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Contents Acknowledgments vii Introduction 11 Horatio Alger Ragged Dick, or Street Life in New York with the Boot-Blacks (1867) 122 Warren Bennis On Becoming a Leader (1989) 183 Frank Bettger How I Raised Myself from Failure to Success in Selling (1947) 244 Kenneth Blanchard & Spencer Johnson The One Minute Manager (1981) 305 Edward Bok The Americanization of Edward Bok: The Autobiography of a Dutch Boy Fifty Years After (1921) 366 Claude M. Bristol The Magic of Believing (1948) 427 Warren Buffett (by Roger Lowenstein) Buffett: The Making of an American Capitalist (1995) 488 Andrew Carnegie The Autobiography of Andrew Carnegie (1920) 569 Chin-Ning Chu Thick Face, Black Heart: The Asian Path to Thriving, Winning and Succeeding (1992) 6210 George S. Clason The Richest Man in Babylon (1926) 6811 Robert Collier The Secret of the Ages (1926) 7412 Jim Collins Good to Great: Why Some Companies Make the Leap… And Others Don’t (2001) 8013 Russell H. Conwell Acres of Diamonds (1921) 8614 Stephen R. Covey The 7 Habits of Highly Effective People (1989) 9015 Michael Dell Direct from Dell: Strategies that Revolutionized an Industry (1999) 9616 Henry Ford My Life and Work (1922) 10217 Benjamin Franklin The Way to Wealth (1758) 10818 W. Timothy Gallwey The Inner Game of Tennis (1974) 11419 John Paul Getty How to Be Rich (1961) 12020 Les Giblin How to Have Conﬁdence and Power in Dealing with People (1956) 12621 Baltasar Gracian The Art of Worldly Wisdom (1647) 13222 Earl G. Graves How to Succeed in Business without Being White: Straight Talk on Making It in America (1997) 13823 Napoleon Hill Think and Grow Rich (1937) 14424 Napoleon Hill & W. Clement Stone Success through a Positive Mental Attitude (1960) 15025 Tom Hopkins The Ofﬁcial Guide to Success (1982) 15626 Muriel James & Dorothy Jongeward Born to Win: Transactional Analysis with Gestalt Experiments (1971) 162

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50 SUCCESS CLASSICS27 Spencer Johnson Who Moved My Cheese? An Amazing Way to Deal with Change in Your Work and in Your Life (1998) 16828 Robert Kiyosaki Rich Dad, Poor Dad: What the Rich Teach Their Kids about Money… That the Poor and Middle Class Do Not! (1997) 17229 David S. Landes The Wealth and Poverty of Nations: Why Some Are So Rich and Some So Poor (1998) 17830 Abraham Lincoln (by Donald T. Phillips) Lincoln on Leadership: Executive Strategies for Tough Times (1992) 18631 Jim Loehr & Tony Schwartz The Power of Full Engagement: Managing Energy, not Time, Is the Key to High Performance and Personal Renewal (2003) 19232 Nelson Mandela Long Walk to Freedom: The Autobiography of Nelson Mandela (1994) 19833 Orison Swett Marden Pushing to the Front, or Success under Difﬁculties (1894) 20434 J. W. Marriott Jr. The Spirit to Serve: Marriott’s Way (1997) 21035 Catherine Ponder The Dynamic Laws of Prosperity (1962) 21636 Cheryl Richardson Take Time for Your Life: A Seven-Step Program for Creating the Life You Want (1998) 22237 Anthony Robbins Unlimited Power: The New Science of Personal Achievement (1986) 22838 Eleanor Roosevelt (by Robin Gerber) Leadership the Eleanor Roosevelt Way: Timeless Strategies from the First Lady of Courage (2002) 23439 David J. Schwartz The Magic of Thinking Big (1959) 24040 Florence Scovel Shinn The Secret Door to Success (1940) 24641 Ernest Shackleton (by Margot Morrell & Stephanie Capparell) Shackleton’s Way: Leadership Lessons from the Great Antarctic Explorer (2001) 25242 Thomas J. Stanley The Millionaire Mind (2000) 25843 Brian Tracy Maximum Achievement: Strategies and Skills that Will Unlock Your Hidden Powers to Succeed (1993) 26444 Sun Tzu The Art of War (4th century BCE) 27045 Sam Walton Made in America: My Story (1992) 27646 Wallace D. Wattles The Science of Getting Rich (1910) 28247 Jack Welch Jack: Straight from the Gut (2001) 28848 John Whitmore Coaching for Performance: GROWing People, Performance, and Purpose (1992) 29449 Richard Wiseman The Luck Factor: Change Your Luck – And Change Your Life (2003) 30050 Zig Ziglar See You at the Top (1975) 306 Chronological list of titles 311 Credits 313 vi

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AcknowledgmentsTamara Lucas, for your vital feedback and inspiration, as always. Noah & Beatrice Lucas, for your valuable encouragement, andHoward and Maurice Taylor, for the computer. Marion Butler-Bowdon, for being such a great model of success. Nicholas Brealey, for your commitment to the 50 Classics titles andfor the insights that have made this a better book. Terri Welch, for your enthusiastic and effective marketing efforts inthe US. Sally Lansdell, for editing the book into shape with many usefulsuggestions. Victoria Bullock, for your intelligent promotion of the book in theUK. Zoë Munro, for assisting in the success of this and the previousbook. Ken Leeder, for cover design work that properly expresses thecontent.

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IntroductionW e desire success almost as much as we need to breathe. From the moment we are born we want to do more, get more, be more. While we may have a mental picture of success asstriving hard toward perfection, in truth it is more natural. Success canbe described as the courage to let out the potent dreams and potentiali-ties already in us, simply to give them air. Most people don’t do thisbecause it seems dangerous, it is not routine. Yet those who have gonethis way do see it simply as the normal path of life. It feels more likehome, a place that should be everyone’s experience. Sometimes the urge for more is drummed out of us by upbringing orculture, so you may have felt compelled to lower your expectations andsettle for a less extraordinary life. If, however, you have recently resur-rected your desire to succeed, this book is for you.Authentic achievementMy previous book, 50 Self-Help Classics, was concerned with thesearch for authentic happiness and a sense of purpose. 50 SuccessClassics is about authentic or meaningful achievement. Only you will know whether you have achieved your aims in life.Some people spend their life climbing up a ladder, to paraphrase JosephCampbell (see 50 Self-Help Classics), only to ﬁnd it was up against thewrong wall. This is why the term authentic is used: doing something orbecoming something that expresses your full personality and abilities inthe most noble way. Success is not an event or a result in isolation, butan expression of the best that is within you. The world provides endlesspossibilities for making it more efﬁcient, more humane, more beautiful.It is up to you to ﬁnd your niche. Real achievement is not concerned with winning for the sake of it.As Timothy Gallwey puts it: “Winning is overcoming obstacles to reach a goal, but the value in winning is only as great as the value of the goal reached.”

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INTRODUCTIONYou need to make a distinction between a compulsion to succeed forthe sake of winning, and the desire for enduring achievements that willenrich your life and the lives of others. Authentic and lasting successutilizes the resources of the world to the greatest effect and with theminimum of waste.Characteristics of successful peopleWhat makes a person successful? What makes them motivated, pros-perous, a great leader? These questions ﬁred the writing of each bookcovered in this selection, and it is possible to draw out some commonthreads as answers. The following is only a brief and partial list, but itmay whet your appetite to discover for yourself some of the principlesof success.OptimismOptimism is power. This is a secret discovered by all who succeedagainst great odds. Nelson Mandela, Ernest Shackleton, EleanorRoosevelt—all admitted that what got them through tough times wasan ability to focus on the positive. They understood what ClaudeBristol called “the magic of believing.” Yet great leaders also have anunusual ability to face up to stark reality, so creating a single powerfulattribute: tough-minded optimism. Optimistic people tend to succeed not simply because they believethat everything will turn out right, but because the expectation of suc-cess makes them work harder. If you expect little, you will not be moti-vated even to try.A definite aim, purpose, or visionSuccess requires a concentration of effort. Most people disperse theirenergies over too many things and so fail to be outstanding in any-thing. In the words of Orison Swett Marden: “The world does not demand that you be a lawyer, minister, doctor,farmer, scientist, or merchant; it does not dictate what you shall do, but it does require that you be a master in whatever you undertake.”So to be successful, you must have higher aims and goals and doggedlypursue their realization. 2

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50 SUCCESS CLASSICSWillingness to workSuccessful people are willing to engage in drudgery in the cause of some-thing marvelous. The greater part of genius is the years of effort investedto solve a problem or ﬁnd the perfect expression of an idea. With hardwork you acquire knowledge about yourself that idleness never reveals. A law of success is that, once ﬁrst achieved, it can create a momen-tum that makes it easier to sustain. As the saying goes, “Nothing suc-ceeds like success.”DisciplineEnduring success is built on discipline, an appreciation that you mustgive yourself orders and obey them. Like compound interest, this sub-ject may be boring, but its results in the long term can be spectacular. Great achievers know that while the universe is built by atoms, successis built by minutes; they are masters when it comes to their use of time.An integrated mindSuccessful people have a good relationship with their unconscious orsubconscious mind. They trust their intuition, and because intuitionsare usually right, they seem to enjoy more luck than others. They havediscovered one of the great success secrets: When trusted to do so, thenonrational mind solves problems and creates solutions.Prolific readingLook into the habits of the successful and you will ﬁnd that they areusually great readers. Many of the leaders and authors covered hereattribute the turning point in their lives to picking up a certain book. Ifyou can read about the accomplishments of those you admire, you can-not help but lift your own sights. Anthony Robbins remarked that“success leaves clues,” and reading is one of the best means of absorb-ing such clues. Curiosity and the capacity to learn are vital for achievement, thusthe saying “leaders are readers.” The person who seeks growth, DaleCarnegie said, “must soak and tan his mind constantly in the vats ofliterature.”Risk takingThe greater the risk, the greater the potential success. Nothing ven-tured, nothing gained. Be action oriented. 3

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INTRODUCTIONRealizing the power of expectationSuccessful people expect the best and they generally get it, becauseexpectations have a way of attracting to you their materialequivalent. Since your life corresponds pretty much to the expectations youhave of it, the achiever will argue, why not think big instead of small?MasteryAdvanced beings can turn any situation to their advantage. They are“masters of their souls, captains of their fate.” When other parties are involved, they will seek solutions in whichgains are maximized for all. In the words of Catherine Ponder: “You do not have to compromise in life, if you are willing to let go of the idea of compromise.”Well-roundednessAchievements mean little if we are not a success as a person. Thecapacities to love, listen, and learn are vital for our own well-being,and without them it is difﬁcult to have the fulﬁlling relationships thatwe need to both renew us and inspire achievement.A quick tour of the literatureBelow is an overview of titles covered in 50 Success Classics, dividedinto four categories:❖ Motivation❖ Fulﬁlling your potential❖ Prosperity❖ LeadershipMotivationHoratio Alger Ragged DickFrank Bettger How I Raised Myself from Failure to Success in SellingClaude M. Bristol The Magic of BelievingRobert Collier The Secret of the AgesStephen R. Covey The 7 Habits of Highly Effective PeopleLes Giblin How to Have Conﬁdence and Power in Dealing with People 4

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50 SUCCESS CLASSICSNapoleon Hill & W. Clement Stone Success through a Positive Mental AttitudeTom Hopkins The Ofﬁcial Guide to SuccessOrison Swett Marden Pushing to the FrontAnthony Robbins Unlimited PowerDavid J. Schwartz The Magic of Thinking BigFlorence Scovel Shinn The Secret Door to SuccessBrian Tracy Maximum AchievementZig Ziglar See You at the TopWhen we think of success writing it is often the motivational classicsthat ﬁrst come to mind, and the titles in this selection represent the his-torical development of the genre. Horatio Alger and Orison Swett Marden grandfathered the modernsuccess movement in the nineteenth century, Alger with his entertainingand instructional stories of poor boys made good, and Marden with hisencyclopedic treatment of success based on the lives of great people.Both proliﬁc, these writers raised the sights of a couple of generations,but what may be surprising is how inspiring they still are today. If youare lukewarm about contemporary success writing, these older-stylesuccess books are a rich vein to tap. In the 1920s, Robert Collier’sexploration of the mind’s power was a forerunner to the work ofNapoleon Hill, and the books of Florence Scovel Shinn, extraordinaryin the way they provide peace of mind in times of challenge, began toﬁnd eager readers. After the Second World War, people naturally turned their thoughtsto prosperity and “getting ahead.” Millions had not had the opportu-nity of advanced education and had to pull themselves up by theirbootstraps. They were inspired by titles such as Frank Bettger’s How IRaised Myself from Failure to Success in Selling (1947), which with itstimeless principles of selling is still widely read today. Published a yearlater, Claude Bristol’s idiosyncratic meditation on “believing to suc-ceed,” The Magic of Believing, has also had amazing staying power.But perhaps the greatest success book of the postwar period, althoughnot published until 1959, was Schwartz’s The Magic of Thinking Big.Its references are mostly to corporate life in 1960s suburban America,but its universal theme that “the size of your success is measured by thesize of your belief” quickly made it one of the landmarks in the motiva-tional ﬁeld. 5

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INTRODUCTION Although Dale Carnegie’s speaking classes had been running forsome time, it was only in the 1970s and 1980s that success became itsown industry, driven by seminars and bestsellers. Figures such as ZigZiglar, Denis Waitley, Jim Rohn, Og Mandino, Tom Hopkins, andBrian Tracy became pillars of the motivational profession. At the end of the 1980s, Stephen Covey, who had studied 200 years ofsuccess literature for his doctorate, published The 7 Habits of HighlyEffective People. Its character-based personal development in the style of abusiness book attracted a huge audience, and it could be said that Coveyrevived the success genre and gave it new gravitas. Meanwhile, a youngCalifornian named Anthony Robbins was electrifying audiences with hisrousing techniques of change. His ﬁrst bestseller, Unlimited Power, bor-rowed from the emerging science of neuro-linguistic programming, and heremains the best-known of present-day gurus. Finally, although their simple messages do not require a full commen-tary, mention should be made of the following works: Elbert Hubbard’sfamous A Message to Garcia (1899), a short account of an act of militaryheroism that inspires the reader to “get the job done no matter what”; andEarl Nightingale’s The Strangest Secret (1956), one of the bestselling voicerecordings in history, which alludes to one of the great laws of success.Success scholars should certainly consider adding both to their library.Fulfilling your potentialChin-Ning Chu Thick Face, Black HeartJim Collins Good to GreatW. Timothy Gallwey The Inner Game of TennisBaltazar Gracian The Art of Worldly WisdomEarl G. Graves How to Succeed in Business without Being WhiteMuriel James & Dorothy Jongeward Born to WinSpencer Johnson Who Moved My Cheese?Jim Loehr & Tony Schwartz The Power of Full EngagementCheryl Richardson Take Time for Your LifeSun Tzu The Art of WarJohn Whitmore Coaching for PerformanceRichard Wiseman The Luck FactorYou need to be motivated to achieve success, but staying successfulrequires uncommon wisdom. These books uncover some of the factorsand ideas that can help you achieve your potential. 6

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50 SUCCESS CLASSICS Spencer Johnson’s Who Moved My Cheese? highlights the need tocope with change and to generate it if you are to remain at the cuttingedge, while Jim Collins reminds you through his study of great compa-nies why it is not enough to be merely excellent, you must be the bestin your ﬁeld. Richard Wiseman’s The Luck Factor presents someintriguing new evidence to support his theory that good luck is not theproduct of chance, but can be attracted to you with the adoption ofcertain attitudes and personality traits. Personal coaching is a relatively new phenomenon that promisesdramatic increases in productivity and well-being. Covered here aretwo of the seminal works in the ﬁeld, Timothy Gallwey’s Inner Gameof Tennis and John Whitmore’s Coaching for Performance. There arealso two outstanding titles about work/life balance, from life plannerCheryl Richardson and sports trainers Jim Loehr and Tony Schwartz. When published in 1992, Chin-Ning Chu’s Thick Face, Black Heartshook up the conventional western wisdom on how to achieve, andshould be read by any serious success scholar. Likewise, the ancient Artof War, which despite its title is a work of philosophy, can provide thereader with a valuable win/win mindset for accomplishing seriousgoals. Both titles are a welcome alternative to the familiar diet of west-ern success advice.ProsperityGeorge S. Clason The Richest Man in BabylonRussell H. Conwell Acres of DiamondsBenjamin Franklin The Way to WealthJohn Paul Getty How to Be RichNapoleon Hill Think and Grow RichRobert Kiyosaki Rich Dad, Poor DadDavid S. Landes The Wealth and Poverty of NationsCatherine Ponder The Dynamic Laws of ProsperityThomas J. Stanley The Millionaire MindWallace D. Wattles The Science of Getting RichProsperity and wealth titles have always been an important part of suc-cess literature. Benjamin Franklin knew the power of money to moti-vate back in 1758, when The Way to Wealth was ﬁrst published in oneof his almanacs. With a strong Puritan inﬂuence, the book preachedthrift, hard work, and the idea that “time is money.” 7

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INTRODUCTION Far more recently, in his sweeping The Wealth and Poverty ofNations, David Landes lists similar attributes among those nations thathave done well. Some countries, like some people, are born luckier thanothers in terms of resources, but those that have built wealth throughtheir own devices rise to the top. John Paul Getty, for instance, was theson of a well-off oil businessman, but as his autobiography reveals heparlayed these merely good circumstances into a massive empire thatleft an important philanthropic legacy. Thomas Stanley’s The Millionaire Mind is a fascinating look into thehabits and attitudes of hundreds of wealthy individuals, most of whomare self-made. Stanley concludes that the ability to spot opportunities,more than formal education, is a fundamental ingredient of ﬁnancialsuccess. Robert Kiyosaki’s Rich Dad, Poor Dad points out that the dif-ference between being rich and poor often boils down to whethersomeone makes the effort to develop some ﬁnancial intelligence. Onthis theme, still going strong after over 70 years is George Clason’s TheRichest Man in Babylon, which has taught millions of people how tobuild a fortune through “paying yourself ﬁrst.” A more spiritual approach to ﬁnancial success is expressed in thewritings of Wallace Wattles and Catherine Ponder, who picture theworld as an essentially abundant place that rewards those who appreci-ate that fact. Inﬂuenced by New Thought teachings, these authors pro-vide a calmer, perhaps more enriching road to wealth focused on“manifesting your good.” In a class of its own is Napoleon Hill’s Think and Grow Rich,arguably the greatest success manual. The product of 20 years ofresearch and a condensation of the monumental Law of Success, thisbook was ﬁrst published in Depression-era America, yet its focus onfabulous wealth continues to inspire today’s entrepreneurs. The mix ofspiritual and practical ideas and Hill’s excited and well-honed prosemakes it an irresistible package.LeadershipWarren Bennis On Becoming a LeaderKenneth Blanchard & Spencer Johnson The One Minute ManagerEdward Bok The Americanization of Edward BokWarren Buffett (by Roger Lowenstein) BuffettAndrew Carnegie The Autobiography of Andrew CarnegieMichael Dell Direct from Dell 8

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50 SUCCESS CLASSICSHenry Ford My Life and WorkAbraham Lincoln (by Donald T. Phillips) Lincoln on LeadershipNelson Mandela Long Walk to FreedomJ. W. Marriott Jr. The Spirit to ServeEleanor Roosevelt (by Robin Gerber) Leadership the Eleanor Roosevelt WayErnest Shackleton (by Margot Morrell & Stephanie Capparell) Shackleton’s WaySam Walton Made in AmericaJack Welch JackLeadership writing traditionally discusses particular people only inorder to illustrate a theory. While the list above does include OnBecoming a Leader, a valuable work by a major leadership theorist, itis more interesting and perhaps more valuable to look at the lives ofactual leaders. From the world of industry, The Autobiography of Andrew Carnegiehas become a classic of personal achievement, charting a rise from poorScottish boy to steel magnate to model philanthropist. Ford’s My Life andWork is a richly enjoyable account of a comparatively late starter whochanged the world by being both a great innovator and a master of orga-nization. Less well-known is Edward Bok’s Pulitzer prize-winning auto-biography, which charts the remarkable progress of a Dutch immigrantboy who became one of America’s leading editors and opinion leaders. Leaping forward to the end of the twentieth century, Jack Welch’sblunt yet humane account gives the reader a ﬂy-on-the-wall insight intolife at the top of a huge corporation, while Roger Lowenstein’s bio-graphy of Warren Buffett offers a superb insight into a man recentlyput at the top of Fortune magazine’s list of the “25 most powerful peo-ple in business.” Engrossing titles by Sam Walton, Michael Dell, andBill Marriott expand the list of great contemporary business leaders. Books that focus on what we can learn from the leadership experi-ence of well-known ﬁgures are Donald T. Phillips’ Lincoln onLeadership, Margot Morrell and Stephanie Capparell’s Shackleton’sWay, telling the gripping tale of the Antarctic Endurance expeditionand its lessons for life in the business world, and Robin Gerber’s analy-sis of the inspiring leadership of Eleanor Roosevelt. Last but far from least, a book mostly written while its author wasin prison is Long Walk to Freedom, Nelson Mandela’s often painful 9

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50 SUCCESS CLASSICSstory of a life diverted into a struggle to transform a whole nation—onthe way creating perhaps the most admired leader of our time.Notes on the textThe list of classics in this selection is not deﬁnitive, but I hope it is rep-resentative of the genre. While all of the books have been bestsellers,the main criterion for their inclusion was their impact and renown, orwhether they ﬁlled a niche in terms of a particular subject or person.The books on Shackleton, Lincoln, and Eleanor Roosevelt, for instance,may not be the original classic works relating to their subject, but arestandout works of a comparatively new genre that attempts to extractthe leadership lessons from the lives of the famous. The leaders discussed are not speciﬁc markers for your own success—it is generally not a good idea to compare yourself to other people—buttheir stories illustrate a “way” of success that anyone can apply. Some readers will notice that the majority of the authors are male.This is because most of the success gurus have been men, and men havewritten the bulk of the landmark “how I did it” autobiographies. How-ever, since women are a powerful force in the emerging personal coach-ing ﬁeld and the great majority of new businesses are being started bywomen, this is likely to change. Two ﬁnal notes:❖ With each commentary there is a box referring you to similar works. Most of these are found elsewhere in this book, but, because there is signiﬁcant crossover between the self-help and success ﬁelds, you will sometimes be referred to titles that appeared in 50 Self-Help Classics (50SHC).❖ Most commentaries will contain separate information on each author. The exceptions are those that have already presented facts from the author’s life within the main body of the commentary.So, onward to the classics. I hope you ﬁnd as many usable ideas inthese works as I have. What is provided here is only a taste of the liter-ature (the main ideas, context, and impact of each title), which sitswithin a tradition of criticism and review; I have not provided booksummaries as such. Scholars of success will want to feast on the realthing, so don’t hesitate to acquire those titles that inspire you. 10

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1867 Ragged Dick“But Dick was too sensible not to know that there was something morethan money needed to win a respectable position in the world. He felt that he was very ignorant. Of reading and writing he knew only therudiments, and that, with a slight acquaintance with arithmetic, was allhe did know of books. Dick knew he must study hard, and he dreadedit. He looked upon learning as attended with greater difﬁculties than it really possesses. But Dick had good pluck. He meant to learn,nevertheless, and resolved to buy a book with his ﬁrst spare earnings. ” “‘I hope, my lad,’ Mr Whitney said, ‘you will prosper and rise in the world. You know in this free country poverty is no bar to a man’s advancement.’ ” In a nutshell Whatever you do, you will be more successful if you do it with honesty, fairness, and to the best of your ability. In a similar vein Andrew Carnegie The Autobiography of Andrew Carnegie (p. 56) Russell H. Conwell Acres of Diamonds (p. 86) Benjamin Franklin The Way to Wealth (p. 108) Orison Swett Marden Pushing to the Front (p. 204) Samuel Smiles Self-Help (50SHC) 12

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CHAPTER 1 Horatio AlgerT he New York City of the mid-nineteenth century was an awful place for many of its inhabitants. Areas such as Five Points (the setting for the movie Gangs of New York) were dangerous andﬁlthy, ﬁlled with abandoned or neglected children. Many slept outsideat night, and most wore badly ﬁtting, ragged clothes. During the daythey hawked matches, sold newspapers, shined shoes, or picked pock-ets in order to get money to eat. The authorities did little to alleviatethe situation, and in one celebrated incident a street urchin foundnaked was represented in a court case by the Society for thePrevention of Cruelty to Animals. Horatio Alger, the chronicler of this world to a public who mayhave preferred not to know that it existed, was not himself a NewYorker, having been brought up in middle-class comfort inMassachusetts with a private school education followed by Harvard(see Rychard Fink’s Introduction to the 1962 edition). Though he had had some writing published, Ragged Dick, or StreetLife in New York with the Boot-Blacks was his ﬁrst bestseller, settingthe template for scores of poor-boy-makes-good novels that had amassive inﬂuence on young Americans (Groucho Marx and ErnestHemingway were among those said to have devoured Alger’s work).Here we will look at the outline of the story and Alger’s signiﬁcantplace in the success literature.The storyAt a time when Central Park was still “a rough tract of land” linedwith workers’ huts, there was a bootblack known as Ragged Dick.With his mother dead and his father gone to sea, Dick spends his daysshining boots for businessmen, his evenings (if he has some sparecoins) watching cheap plays at the Old Bowery theater, and his nightsin doorways wrapped up in newspapers. If he’s ﬂush he will stay at theNewsboys Lodging House for 6 cents a night and buy a meal at acafé. 13

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HORATIO ALGER After an unexpected windfall, Dick rents a squalid room that to himseems impossibly luxurious. In return for tutelage, he lets another boy,the once well-cared-for and well-read Henry Fosdick, share his room.This two-person self-improvement society is perfect for both. Dick getsan “edoocation” and Fosdick a place out of the cold. Though theymust live through a series of adventures, the boys ﬁnd a way tosucceed. The tale is a page-turner, and the reader delights in Dick’s joy atsuch simple things as a new suit of clothes, opening a bank account,and eating a piece of steak. As Alger makes clear, Dick, who by the endof the short book has become Dick Hunter Esq., is very likeable. Hehas pluck and wit to balance his earnest strivings to be “spectable”and, despite ﬁrst-hand experience of the best rogues and swindlers thecity has to offer, is a perennial optimist. Following are some of Horatio Alger’s lessons of success as learnedby the young Dick.Make your own luckDick’s big break comes on a ferry crossing into Brooklyn. He sees achild fall over the side into the water and wastes no time before jump-ing in, somehow managing to pull the child to safety. The panickedfather, who could not swim, is amazed to have his child alive andpromises Dick any reward. Later, the man offers Dick a job in a count-ing house at $10 a week, many times his current earnings. A greatstroke of luck? Not really, for Dick’s selﬂessness was the cause of thisgood fortune, and his diligence in self-education every night meant thathe could be hired without the slightest whiff of charity. Luck happens to those who greatly increase the chances of itsoccurrence.Whatever you do, do it to your utmostLife seems to require that, even if we don’t like what we are doing, wemust do it to the best of our ability before we can move on to the nextthing. Ragged Dick is only a bootblack, but he uses his “profession” tosave money, meet a higher class of people, and generally better himself. 14

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50 SUCCESS CLASSICSBecome a readerDick meets the son of a wealthy man and shows him around the cityfor a day. Later, the boy’s father tells Dick that “in this country povertyis no bar to achievement” and relates his own rise from apprenticeprinter to successful businessman. He notes that there was one thing hetook away from the printing ofﬁce “which I value more than money.”When Dick asks what this was, the man replies: “A taste for reading and study. During my leisure hours I improved myself by study, and acquired a large part of the knowledge which I now possess. Indeed, it was one of my books that ﬁrst put me on the track of the invention, which I afterwards made. So you see, my lad, that my studious habits paid me in money, as well as in another way.”Be a saver, but be generousWhen Dick receives an unexpected sum of $5, he opens a bankaccount. The amount that builds gives him a great source of securityand pride, as he no longer has to live hand-to-mouth. While delightedthat he is now a “capitalist,” he is quick to help a friend in need.Fosdick, the boy with whom he shares his lodgings, wants to get anofﬁce job instead of shining shoes, so Dick purchases a suit of properclothes for him. On another occasion he helps out a buddy whosemother is ill.Never cheat, steal, or lieThough temptations to do otherwise are often great, Dick has a per-sonal code that “stealin’ is mean.” His sense of honor and fair play,which appears naive to “sophisticated” types, ﬁnally proves to be thesource of his success. For someone who lives from day to day, his beliefin “doing right” is remarkably farsighted. The character Mr. Whitneytells Dick: “Remember that your future position depends mainly uponyourself, and that it will be high or low as you choose to make it.” Honesty, which seems “old-fashioned” to the fast crowd, is the basisof all enduring success, since it brings with it knowledge of the self. 15

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HORATIO ALGERDon’t drink or smokeLong before medical evidence of its harm was available, Alger was call-ing smoking a “ﬁlthy habit” that gave no dignity to the smoker. Drink-ing, of course, was even worse. It was the enemy of frugality becauseyou could blow your week’s savings in a night on the grog, and theenemy of industry because the inevitable hangovers affected your work-ing day. The temperance movement seems archaic today, but scores of liveswould be better without even a moderate intake of alcohol. To Alger itsapped drive, pickled the independent mind, and eroded goodcharacter.Final commentsDespite being rattling good yarns that really can inspire, the commonview of Horatio Alger’s books is that they are quaint historical pieceswith a simplistic message about striving and getting ahead. Yet successcan be simple if you have the basic elements of personal character andaspiration, with some luck thrown in. As Rychard Fink has noted, when Ragged Dick was written HerbertSpencer’s writings on “the survival of the ﬁttest” had some inﬂuence inAmerica. Yet Alger’s idea of success included a strong element of socialresponsibility or stewardship. You might make money, but ultimately itshould be put back into society, as Andrew Carnegie did by fundingpublic libraries. With his willingness to give to those in need, Algermakes Dick an example of compassionate capitalism. Many of the villains in his books are rich boys who never had tomake any effort to improve their character. Alger’s main point is thatwe should strive for success not just to get a fortune, but to gain tenac-ity, discipline, frugality, and optimism—qualities that cannot be bought. 16

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50 SUCCESS CLASSICSHoratio AlgerBorn in 1832 in Revere, Massachusetts, at 14 Alger was sent to board-ing school by his father, a strict Unitarian minister, followed by entry toHarvard University at 16. He enjoyed his time there, coming tenth inhis class of 62 and becoming proﬁcient in Greek, Latin, French, andItalian. Forbidden to marry his college sweetheart, the heartbroken Algerdeﬁed his father by stating his intention to become a writer. He agreedto go to divinity school, but just before graduation escaped to Pariswith some friends and enjoyed its liberal atmosphere. Back in Americahe was ordained and became a church minister in Massachusetts, butleft for New York at the suggestion of William T. Adams, editor ofStudent and Schoolmate. The weekly installments of Ragged Dick inthis children’s monthly were wildly popular, and a hardback versionbecame a bestseller. Alger was the toast of New York and sat on variousboards and committees for improving the lot of street children. Helived for a number of years at the Newsboys Lodging House, and diedin 1899. Alger’s other books (over 100) include Strive and Succeed, StrugglingUpward, Bound to Rise, and From Canal Boy to President, about thelife of assassinated President James Garﬁeld. 17

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1989 On Becoming a Leader“Leaders have no interest in proving themselves, but an abiding interest in expressing themselves.” “What is true for leaders is, for better or worse, true for each of us. Only when we know what we’re made of and what we want to make of it can we begin our lives—and we must do it despite an unwitting conspiracy of people and events against us. ” In a nutshell True leadership arises in the full expression of a person’s unique potential. In a similar vein Abraham Lincoln (by Donald T. Phillips) Lincoln on Leadership (p. 186) Eleanor Roosevelt (by Robin Gerber) Leadership the Eleanor Roosevelt Way (p. 234) Ernest Shackleton (by Margot Morrell & Stephanie Capparell) Shackleton’s Way (p. 252) 18

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CHAPTER 2 Warren BennisB ennis is a major ﬁgure in the academic study of leadership, but has also popularized the subject through bestsellers. In 1985 he co-authored Leaders, based on observation and interviews with90 of America’s leaders, ranging from astronaut Neil Armstrong toMcDonald’s founder Ray Kroc. The book’s conclusion was that leader-ship is more crucial than we know, yet can be learned by anyone. While Leaders is a business classic that analyzes the nature ofleadership, On Becoming a Leader is more personal, asking how youcan make leadership a habit of existence while around you the worldbecomes a blur of change. The second book is the product of more in-depth dialog with a smaller number of people, 28 in all, including ﬁlmdirector Sydney Pollack, feminist author Betty Friedan, and musicianand A&M Records founder Herb Alpert.What is a leader?On Becoming a Leader provides many ﬁne insights. Perhaps the keyone, and the theme of the book, is this: True leaders are not interestedin proving themselves, they want above all to be able to express them-selves fully. Proving oneself implies a limited or static view of the self,whereas leaders, by continually seeking their fullest expression, must bewilling to engage in periodic reinvention. For Bennis’s leaders, life isnot a competition but a ﬂowering. Structured education and societyoften get in the way of leadership: “What we need to know gets lost inwhat we are told we should know.” Real learning is the process ofremembering what is important to you, and becoming a leader is there-fore the act of becoming more and more your true self. Leadership is an engagement with life itself, because it demands thatyour unique vision be accomplished, and that usually involves a wholelife. When people protest that they can’t lead, or don’t want to lead, 19

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WARREN BENNISthey are usually thinking of management and giving speeches. Butleadership is as varied as people, and the main question is not whetheryou will be burdened, but how you are challenged to escape mediocrityand conformity and really lead yourself. According to Bennis, becoming a leader involves:❖ Continuous learning and never-dying curiosity.❖ A compelling vision: leaders ﬁrst deﬁne their reality (what they believe is possible), then set about “managing their dream.”❖ Developing the ability to communicate that vision and inspire others to follow it.❖ Tolerating uncertainty and taking on risk: a degree of daring.❖ Personal integrity: self-knowledge, candor, maturity, welcoming criticism.❖ Being a one-off, an original: “Leaders learn from others, but are not made by others.”❖ Reinvention: to create new things sometimes involves recreating yourself. You may be inﬂuenced by your genes and environment, but leaders take all their inﬂuences and create something unique.❖ Taking time off to think and reﬂect, which brings answers and pro- duces resolutions.❖ Passion for the promises of life: a belief in the best, for yourself and others.❖ Seeing success in small, everyday increments and joys, not waiting years for the Big Success to arrive.❖ Using the context of your life, rather than surrendering to it.What does the last point mean? Bennis believes that late twentieth-century business life was mostly about managing rather than leading,with people and organizations focusing on small matters and short-term results. His message is: Stop being a product of your context, ofyour particular place and time. You can see your context as the backdrop for your particular geniusto develop, or you can let it enslave your mind. In many ways the pathof a “driven” person is an easy one, since it does not require muchthought. The leader’s path is consciously taken, may be more challeng-ing, but involves inﬁnitely greater potential and satisfaction, not tomention better health. To lead, you have to make a declaration of inde-pendence against the estimation of others, the culture, the age. You 20

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50 SUCCESS CLASSICShave to decide to live in the world, but outside existing conceptions ofit. Leaders do not merely do well by the terms of their culture, theycreate new contexts, new things, new ways of doing and being.Some examplesPersonal integrity, a compelling vision, and the ability to enjoy risk anduncertainty deﬁne leadership. Bennis uses the example of televisionwriter/producer Norman Lear, who revolutionized US television bymaking shows such as All in the Family and Cagney and Lacey. For theﬁrst time, TV shows reﬂected real American people rather than cow-boys, private eyes, and caricatured families. Lear saw a world that waswaiting to be expressed, and expressed it. Not only did his shows breakthe mold, they were successful year after year. In his assessment of American presidents, Bennis sees Johnson,Nixon, and Carter as driven men who projected their personal historieson to the country they ruled. Roosevelt, Truman, Eisenhower, andKennedy, on the other hand, had the gift of personal reinvention andlived in the present to reshape the United States’ future. Lincoln wasperhaps the greatest president because he focused on what at the timeseemed only remote possibilities: ending slavery and preserving theUnion. His ﬁts of deep personal depression were nothing put next tothose mighty causes.A world of leadersBennis’s conviction is that we are in dire need of leaders. He wrote OnBecoming a Leader when American economic leadership was beingseriously challenged—we forget now, but in the late 1980s it did seemfor a while that Japan was surpassing the US in production, wealth,and innovation. Maybe the United States listened to Bennis and other leadershiptheorists, for the American economic resurgence was characterized byobsession with innovation and quality, and the realization that ﬁrms getahead by helping their employees reach their full potential. It tooksomeone of the stature of Bennis to highlight the link between self-knowledge and business success, but this is now becoming accepted.The new type of leader is not satisﬁed with doing a job or running acompany, but is compelled to ﬁnd an outlet for their personal vision of 21

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WARREN BENNISthe world. Now, the only way many companies can attract and keepthe best people is by offering them more than merely money or pres-tige—they offer them the chance to make history. Consider, forinstance, the motto of internet retailer Amazon.com: “Work hard, playhard, change the world.”Final commentsBennis has probably done as much as anyone to shatter the myth ofleaders as heroes, born not made. Above all, leadership is a choice andinvolves leading ourselves ﬁrst. We live in a democracy of leadership, in which everyone can lead insome way. As more people understand what leadership means and aretaught to achieve their potential, it might be expected that competitionwill increase to ridiculous levels. However, competition is the result ofeveryone striving to win at the same thing, whereas personal visions areunique. To become a leader is to claim the power and assurance thatcome from being a one-off. This commentary is based on the original edition of On Becoming aLeader. There is a new, updated and expanded edition that you mayprefer to acquire. 22

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50 SUCCESS CLASSICSWarren BennisAt 19, Bennis was the youngest infantry commander among the Alliesto ﬁght in Europe in the Second World War. Back in the United Statesat Antioch College, he found a mentor in Douglas McGregor, theground-breaking management theorist, and was also inﬂuenced byAbraham Maslow. After studying group dynamics, he wrote about neworganizational forms and coined the term “adhocracies” as the oppositeof bureaucracies. He gained his PhD at Massachusetts Institute ofTechnology (MIT). Bennis was president of the University of Cincinnati and executivevice-president at the State University of New York, and has been on thefaculty of MIT’s Sloan School of Management, Harvard and BostonUniversities, INSEAD, and the Indian Institute of Management inCalcutta. His other books include Organizing Genius (1997), Co-Leaders: The Power of Great Partnerships (1999), and the auto-biographical An Invented Life (1993), and most recently Geeks andGeezers: How Era, Values, and Deﬁning Moments Shape Leaders(2002) with Robert J. Thomas. On Becoming a Leader has been pub-lished in 13 languages. Bennis is founder and Distinguished Professor of the LeadershipInstitute, Marshall School of Business, at the University of SouthernCalifornia in Los Angeles. 23

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1947 How I Raised Myself from Failure to Success in Selling“I hope you will overlook and forgive me for using the personal pronoun ‘I.’ If there is anything in this book that sounds as though I am bragging about myself, I didn’t intend it that way. Whatever bragging I’ve done was meant for what these ideas did for me, and what they will do for anyone who will apply them.” “Talk about walking a mile to get a cigarette—when I started out to sell, I would gladly have walked from Chicago to New York to get a ” copy of this book, if it had been available. Dale Carnegie In a nutshell Every successful person knows how to sell what they offer. Enthusiasm and organization are the basic elements in selling. In a similar vein Dale Carnegie How to Win Friends and Inﬂuence People (50SHC) Benjamin Franklin Autobiography (50SHC) Les Giblin How to Have Conﬁdence and Power in Dealing with People (p. 126) Tom Hopkins The Ofﬁcial Guide to Success (p. 156) 24

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CHAPTER 3 Frank BettgerF rank Bettger had once been something of a baseball star, playing for the St. Louis Cardinals. An injury to his arm ended his sporting career, and with no particular skills he wound up cycling thestreets of his home town, Philadelphia, collecting installments for a fur-niture company. After two miserable years at this he tried his hand at selling lifeinsurance and fared even worse, deciding that he was “never cut out tobe a salesman.” How I Raised Myself from Failure to Success in Sellingis the account of what he learned to enable his transformation fromstruggler to the star of his ﬁrm. Though ostensibly about how to sell,it is in fact a classic personal success guide; though giving amusinginsights into the life of an insurance agent in the 1930s and 1940s, it isin many ways quite timeless.Confidence through speaking wellTo overcome a desperate fear that clearly held him back from makingsales, at the age of 29 Bettger inquired at his local YMCA whether therewere any kind of speaking courses. Told that one was being taught atthat very moment, he was introduced to the course leader, Dale Carnegie. So began a long friendship with the author of How to Win Friendsand Inﬂuence People. Bettger learned how to rid himself of the terror ofsaying a few words in front of an audience, and in time his problembecame how to stop talking. Later, Carnegie would invite the youngsalesman to join him on a speaking tour across America. Bettger had discovered the paradox that the best way of developingself-conﬁdence quickly is through speaking to groups: once you have 25

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FRANK BETTGERdone it a few times, approaching someone important does not seem sohorrifying, and thus you are able to enlarge your circle of contacts. AsBettger puts it, speaking publicly “gets you out of your shell.” The abil-ity to speak in front of other people heightens your general level ofcourage and is a cornerstone of a successful life. Do you know anyachievers who are too frightened to speak in public?The greatest selling secretBettger became so successful that he could have retired at age 40. Whatwas it that vaulted him to the top rank of sales professionals? It mayseem obvious, but if you don’t have it you get nowhere: enthusiasm. Once dropped from a baseball team for being too laid-back, Bettgerdecided he would prove a point to his former coach by doubling hislevel of enthusiasm in his new team. It worked so well that newspaperreporters nicknamed him “Pep” Bettger and he became the top playerin the team, his income increasing by 700 percent. Later, when hewasn’t doing well in insurance, he decided to apply the same level ofenthusiasm to his work, again witnessing an astonishing difference inresults. The conventional wisdom is that you get enthusiastic when youachieve success at something—the feeling comes after the act. ButBettger discovered the truth of Harvard philosopher William James’sobservation that the act can create the feeling; that is, you can becomeexcited about something simply by acting excited about it. Later in hisbook, Bettger presages today’s cognitive science by suggesting that thepractice of regular smiling creates a feeling of happiness and goodwill.Test this out for yourself, and remember that enthusiasm alone cantransform your life and your earnings.Getting organizedTrue to the maxim that success comes to those who simply show up,Bettger made a commitment to making at least four or ﬁve sales calls aday. In addition, he kept records of all his sales appointments. With this disciplined approach he was able to review the results as awhole, working out the average amount of dollars that he made foreach call, whether or not he sold a policy. Dedication to doing the leg-work made his task of earning commissions seem much easier. 26

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50 SUCCESS CLASSICS Another important factor in Bettger’s success was that everySaturday morning he sat down and planned the week ahead. This notonly made him more relaxed when he went into work on Mondaymorning, because he had thought about the people he was going to see,it also made the job more interesting. He notes that the famous effec-tiveness of the International Business Machines (IBM) sales force wasdue to their use of weekly planning sheets so that every hour of everyday was accounted for. He concludes: “Selling is the easiest job in the world if you work it hard—but the hardest job in the world if you try to work it easy.”Success may look fully formed when we behold it with the perspectiveof years, but those who have achieved it know that it arrived becausethey made every hour and every moment productive. We are often sofearful of whether or not we can achieve something that we cannot seethat if it is broken down into smaller, daily steps it becomes mucheasier. Organization and discipline are more important to success than aregreat amounts of energy. Bettger mentions one of the bestsellingauthors of his day, Mary Roberts Rinehart, who started writing novelslate at night in response to family debt and the need to care for threechildren and a sick mother. When he met her, Bettger asked Mrs.Rinehart if the punishing schedule had worn her down. She replied,“On the contrary, my life took on a new zest.” The unlikely fact thatdoing more gives you greater energy to achieve more is a timeless suc-cess secret.Great ideasBettger’s book is a compendium of everything he learned as a salesman.In its 35 chapters there are hundreds of great ideas. Here is a sample:❖ The best salespeople do not “sell”—they ﬁnd out what the other person wants, then help them ﬁnd the best way to get it.❖ When trying to sell something, talk mostly in terms of “you” and “your.” This lets the other person know you are thinking mainly of their interests.❖ Forget witty conversation—be a good listener instead. 27

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50 SUCCESS CLASSICS❖ Invest in increasing your knowledge of your own industry. You can’t afford not to.❖ In contacts with clients, praise your competitors. It shows clients you are even-handed and won’t hide anything from them.❖ Use “witnesses” (i.e., satisﬁed clients) to sell your product to new clients. Then you can say, “Don’t listen to me, listen to them.”❖ Use a magic question to keep yourself in the presence of a potential client. Ask them: “How did you happen to get into this business, Mr/s…?” The history of a person’s career is always of the highest interest to them.❖ Prepare for an audience of one as you would an audience of a hundred; i.e., prepare properly for every meeting.❖ Be like Abraham Lincoln with his famous two-minute Gettysburg Address, and remember that the book of Genesis is only 442 words long—become a “master of brevity.”❖ When you greet someone, say their name.❖ For 30 days, smile frequently and watch it transform your life.❖ Don’t ever engage another person in argument. Instead, ask ques- tions whose answers are likely to bring them round to your viewpoint.Final commentsTo succeed as a salesperson, you require a level of self-discipline, deter-mination, and courage that will serve you well in any other ﬁeld.Though not the most respected of professions, sales has been the pathout of mediocrity for many who had a truncated education. In Bettger’scase, the psychological hurdles he had to overcome freed him from asense of limitation. Before you disregard this book, thinking “I am not a salespersonand have no interest in sales,” perhaps you should widen your deﬁni-tion of selling. We all have to persuade others to buy into our ideas oragree to our suggestions, and you can do this with much greater effec-tiveness if you are willing to study a few easy techniques. Bettger’swork is a great place to start. 28

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50 SUCCESS CLASSICSFrank BettgerBettger was born in 1888 and grew up in Philadelphia. His father diedwithout any life insurance, leaving Mrs. Bettger to cope with ﬁve smallchildren, three of whom died in epidemics. Bettger’s hero was anothernative of the city, Benjamin Franklin. Bettger was persuaded to write How I Raised Myself from Failure toSuccess in Selling by Dale Carnegie, who had earlier invited him to joina speaking tour of the United States to Junior Chambers of Commerce.Bettger’s other bestseller was How I Multiplied My Income andHappiness in Selling. He died in 1981. 29

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1981 The One Minute Manager“Everyone who worked with him felt secure. No one felt manipulatedor threatened because everyone knew right from the start what he was doing and why. ” “As he sat at his desk thinking, the new One Minute Manager realizedwhat a fortunate individual he was. He had given himself the gift of getting ” greater results in less time. In a nutshellClarity about goals saves a huge amount of energy that can be deployed productively in other areas. In a similar vein Warren Buffett (by Roger Lowenstein) Buffett (p. 48) Ernest Shackleton (by Margot Morrell & Stephanie Capparell) Shackleton’s Way (p. 252) Jack Welch Jack (p. 288) 30

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CHAPTER 4 Kenneth Blanchard & Spencer JohnsonA young man searches all over the world for an example of a great manager. He wants to work for one and learn how to becomeone. But most of the workplaces he has seen do not provide any greatinspiration. He meets hard-nosed managers who get things done butwhom the staff do not much like, and pleasant managers who lovetheir staff but do not pay enough attention to the bottom line. Could there exist a manager who combines the best qualities ofeach? The young man hears about someone who seems to ﬁt the bill,ironically in a nearby town. To his surprise, this manager agrees to seehim right away and talk about how he manages his people. So beginsthe allegory of the one minute manager. You are to be forgiven for being wary of a method of managing peo-ple that purports to take only one minute. Can it really work? Sales ﬁg-ures for The One Minute Manager suggest that:❖ managers dream of spending less time on staff motivation and prob- lems, and will grasp at anything that suggests a way out; or❖ there must actually be something to this style of management.The way of the one minute managerThere are three secrets of or elements to one minute management:❖ Agree on goals (no more than half a dozen) with staff members. Make sure that each goal is written on a separate piece of paper. This is “one minute goal setting.” From this point on staff know exactly what is expected of them and will rarely come to the boss with problems—they know they are hired to solve them.❖ Staff should reread the goals frequently as a means of ensuring that 31

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KENNETH BLANCHARD & SPENCER JOHNSON performance matches expectations. They should also provide detailed records of progress for the managers. This is not so that the manager can breathe down their neck, but so that he or she can “catch them doing something right.” This allows for “one minute praisings,” which provide immediate and speciﬁc positive feedback on actions undertaken.❖ If a person has the skills to do something right and it is not done right, the manager will provide a “one minute reprimand.” This stern rebuke is of the action or behavior, not the person, and the manager will express consternation that it is not up to the staff member’s usual high standards. After the reprimand, the manager reminds the person how much they are valued.The second part of the story attempts to explain why one minute man-agement works. One minute goal setting works because “the number one motivatorof people is feedback on results.” We like to know how we are doing,and if we are doing well we feel good. The one minute manager has aplaque on the wall reading: “Take a minute—Look at your goals—Look at your performance—See if your behavior matches your goals.”Simple but effective. One minute praisings are also effective for motivational reasons. It israre to ﬁnd someone who knows how to do everything well from dayone; you have to put some effort into training. “So the key to trainingsomeone to do a new task is, in the beginning, to catch them doingsomething approximately right until they can eventually learn to do itexactly right.” Discipline doesn’t work with people who are not securein what they are doing, only encouragement does. Praise gets themmoving in the right direction. Though it need take up very little time,praise is the fuel that can drive a whole enterprise. One minute reprimands work because they are the fairest form offeedback for correcting below-par performance. Since goals have beenset and expectations are so transparent, the person will usually seewhen the reprimand is fair. The manager is respected because he or shehas “spoken the simple truth.” As the reprimand is quick and focusedon speciﬁc action (not the person themselves), there is less bad feeling;when the encounter is over it always ends on a good note and can besoon forgotten or even made light of. 32

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50 SUCCESS CLASSICSManaging to leadThe very simplicity of one minute management will deem it suspect insome people’s eyes, yet it is little more than the application of efﬁciencyto workplace interpersonal relations. The philosophy of “taking verylittle time to get big results” comes from a nuts-and-bolts appreciationof human nature. The story’s one minute manager admits that management cannotalways be performed in a minute. It is more a symbol of the idea thatmanaging people can be much less complicated than we think. There’sno need for endless sessions to discuss objectives and problems. Sometime needs to be invested in establishing goals, but after that the con-tact between boss and subordinate can be minimal. Consider some successful examples of this way of managing people.Investor Warren Buffett (see p. 48) employs business managers whosesmall number of objectives are so clear that he rarely needs to meetwith them. They get on with the job and send him periodic reports.Antarctic explorer Sir Ernest Shackleton (see p. 252) was so respectedby his crew members because they knew exactly what was expected ofthem; if they were reprimanded for anything, there was always a clearand rational reason. More recently, GE boss Jack Welch (see p. 288)explained his management style as “kicks and hugs,” which weremeted out or given only according to strictly outlined, previouslymapped-out goals. This did not create a climate of fear—if people didnot measure up they could blame no one but themselves. One further thought: The ideas in The One Minute Manager are notmerely for the work environment, they can apply to many areas of per-sonal relations. To be “tough and nice,” for instance, should be thegoal of any parent.Final commentsAfter decades of weighty tomes on management science and organiza-tional behavior, The One Minute Manager came as a breath of fresh airfor managers. It may seem simplistic, but it was ﬁrmly based on the lat-est ﬁndings in behavioral psychology. Blanchard and Johnson’s geniuswas to dress up this knowledge in the more attractive form of a story. With today’s ﬂatter organizational structures and emphasis on work-ing in teams, it could be argued that the book is less relevant. It seemsto express an older, hierarchical and sexist model of the workplace, 33

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KENNETH BLANCHARD & SPENCER JOHNSON“the boss and his subordinates.” What is more, today we enjoy makingthe distinction between mere managers and leaders—while the latterinspires, the former simply manages. Yet true leaders, as the examples above suggest, will ﬁnd it difﬁcultto get anywhere without some basic people management skills. Theywill seek to create relaxed workplaces in which people have all the timethey need to pursue important goals. This sense of relaxed purposearises because everyone knows exactly what their role is; there existboth transparency and clarity of purpose. 34

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50 SUCCESS CLASSICSKenneth Blanchard & Spencer JohnsonBlanchard has a BA from Cornell University in Government andPhilosophy, an MA from Colgate University in Sociology andCounseling, and a PhD in Administration and Management. He is theauthor of a widely used academic text, Management of OrganizationalBehavior: Utilizing Human Resources, and is currently professor ofleadership and organizational behavior at the University ofMassachusetts, Amherst. He also runs his own corporate training anddevelopment company. Johnson’s biography is on page 171. Over 750,000 copies of The One Minute Manager are in print. Itssuccess has spawned spinoff titles including Leadership and the OneMinute Manager, The One Minute Sales Person, and Putting the OneMinute Manager to Work. 35

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1921 The Americanization of Edward Bok “ Eventually, then, Bok learned that the path that led to success was wide open: the competition was negligible. There was no jostling. In fact, travel on it was just a triﬂe lonely. One’s fellow-travelers were excellent company, but they were few! It was one of Edward Bok’sgreatest surprises, but it was also one of his greatest stimulants. To go where others could not go, or were loath to go, where at least theywere not, had a twang that savored of the freshest kind of adventure. ” In a nutshellWork for your own success, but ensure that your achievements lift up the wider community. In a similar vein Horatio Alger Ragged Dick (p. 12) Andrew Carnegie The Autobiography of Andrew Carnegie (p. 56) Orison Swett Marden Pushing to the Front (p. 204) David J. Schwartz The Magic of Thinking Big (p. 240) 36

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CHAPTER 5 Edward BokE dward Bok was six years old when, in 1870, his family arrived in New York. They had been reasonably well off in the Netherlands but had lost money in bad investments, and now sought a newstart. Their story is typical of the millions who came to America at thistime, and the fact that one of their two sons rose to some prominence isnot particularly remarkable. What is more unusual is that the youngBok, despite being thrown into school without a word of English, cameto be one of the opinion leaders of his day and a master of the language. The Americanization of Edward Bok: The Autobiography of aDutch Boy Fifty Years After won the Pulitzer Prize for autobiography.It is not the standard “how I made it” narration, but a reﬂection on themigrant experience and to what extent the new country shapes a per-son. It is a success classic because, writing in the third person, theauthor objectively attempts to identify what enabled him to become anachiever. As with many migrants, he found that necessity was a greatmotivator. If you have read your ﬁll of the lives of the great industrial-ists, you may ﬁnd Bok’s account of his rise in the world of wordsrefreshing.Making a markMr. and Mrs. Bok did not adjust easily to their adopted country. Havingpreviously had servants, Bok’s mother could not cope with the burdensof running a household on a limited budget, and for a time his fatherwas unable to ﬁnd good work. To earn money for the family, Edward’sﬁrst sign of entrepreneurial zeal was selling water and lemonade to peo-ple in Brooklyn’s streetcars, and he later began cleaning the windows ofa bakery and serving behind the counter for 50 cents a week. He began his journalistic career by going to parties and writingaccounts of them to sell to newspapers. At 13, Bok left school for a job 37

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EDWARD BOKas an ofﬁce boy at the Western Union Telegraph Company, where hisfather had obtained work as a translator. Concerned at his lack of edu-cation and eager to emulate the successful men of the day, he saved upfor a biographical encyclopedia. This purchase became the basis of aletter-writing campaign to gain the autographs of famous people.Amazingly, he received correspondence from many of the powerbrokersof his time, including Presidents Garﬁeld and Hayes, and GeneralsUlysses S. Grant and William Sherman. The letters became celebratedin the newspapers and consequently Bok met some of his correspon-dents, including Hayes, Grant, and Mrs. Abraham Lincoln. He alsoextended his autograph collecting to literary America, and in time metand struck up friendships with Oliver Wendell Holmes and HenryLongfellow. This wealth of biographical information found an outlet when Boknoticed that the picture cards of famous people that came with packetsof cigarettes were blank on the ﬂip side. He contacted the maker andproposed providing information on the life of each person on the rearof the card. The maker agreed, and Bok co-opted journalists to helphim write hundreds of potted biographies. The little business, moreimportantly, allowed him to develop his editorial skills.Toward successWhen Bok was 18 his father died, and to make extra money to supporthis mother he began producing theater programs and selling the adver-tising for them. His ﬁrst chance at editing came with the production ofthe society organ The Brooklyn Magazine, which grew into a signiﬁ-cant success. By day he was still working at Western Union, which had beentaken over by the famous ﬁnancier Jay Gould. As part of his self-education Bok had learned stenography, and began taking downGould’s correspondence. He also began playing the stock market byfollowing Gould’s moves. Though he did well this was not Bok’s callingand, resisting the advice of the great man, he left to pursue his dreamof a career in publishing, with the publisher Henry Holt. In his spare time, Bok saw an opportunity to create a syndicatedpress to sell weekly columns to newspapers across the country. The ﬁrstcolumnist was the esteemed preacher and writer Henry Ward Beecher,who became a great mentor and friend. Then Bok expanded his busi- 38

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50 SUCCESS CLASSICSness to create a “Woman’s Page,” syndicated to many newspapers. Bokalso wrote a weekly “literary letter from New York,” sold to 30newspapers. In his day job, Bok had now started working at the publisherScribners’ Sons, selling advertising in Scribner’s Magazine and meetingthe likes of Robert Louis Stevenson and Andrew Carnegie.Whatever it takesIn a chapter titled “The Chances for Success,” Bok addresses the con-ventional wisdom that the business world is a thrusting jungle, whereeveryone jostles for advantage and favoritism is rife. To his surprise hefound that merit was the basis of getting ahead, and that instead ofcompetition, hard work and determination won the day. Most of the young men he had worked with could only complainabout how little they were getting paid for the little work they did.Come ﬁve o’clock, it never ceased to amaze him how crowded were theelevators in his building! His own philosophy was that if he was givena piece of work to do, he would ﬁnish it that day even if it meant stay-ing late. In a society driven by merit, he was confounded by how little meritthere was: “He looked at the top, and instead of ﬁnding it overcrowded, he was surprised at the few who had reached there; the top fairly begged for more to climb its heights.”Because he had adopted the philosophy that a person “got in thisworld about what he worked for,” he had achieved more by the age of25 than many do in a whole career.The work of a lifetimeIn 1889, against the advice of his Scribners colleagues and hismother, Bok took up the position of editor of the Ladies’ HomeJournal, a magazine with a circulation of around 440,000. Heaccepted the job not because he knew anything about women, butbecause he could see massive potential in women’s readership andpublications. 39

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EDWARD BOK Bok wanted a more informal, uplifting feel to the magazine com-bined with high-quality articles. Given interesting new departments,hundreds of thousands of letters ﬂooded into the magazine. Most werereplied to if not printed, because Bok saw the enterprise not simply as ajournal but as a “great clearing-house of information.” This attentionto the reader made subscribers incredibly loyal, and before too long cir-culation had doubled. After the new sections were in place, Bok raisedthe tone to include serialization of the novels of some of the ﬁnest writ-ers of the day, such as Rudyard Kipling, and nonﬁction by the likes ofJane Addams and Helen Keller. Totally new for a women’s magazinewas the inclusion of writing by US presidents, ﬁrst Benjamin Harrisonand later Bok’s friend Theodore Roosevelt. Why was the magazine so successful? Bok suggests that, in additionto catering to popular appeal with the usual sections on fashion and soon, he aimed, as he put it, “constantly to widen its scope and graduallylift its standard.” He did not simply “give the people what theywanted”—the conventional recipe for commercial success—but tried tolead them to a slightly higher plane:“The American public always wants something a little better than it asks for, and the successful man, in catering to it, is he who follows this golden rule.”In the longer term this created greater satisfaction and loyalty. Bok used the Ladies’ Home Journal not merely to improve theminds of its readers but also their living environments. Appalled at thelow standard of houses for those who could not afford architects, hepartnered with an architect to print ready-made home designs thatcould be used by builders. This was a great success, and the esteemedarchitect Stanford White stated that Edward Bok, an editor, had “morecompletely inﬂuenced American domestic architecture for the betterthan any man in his generation.” Bok went further by printing colorpictures of model house interiors to inspire the home decorator, andincluded in the magazine handsome prints of famous paintings thatwere put up in millions of homes. At about this time the Journal startedselling a million copies an issue, a milestone for magazine publishing. Bok also had the magazine raise public awareness of the growth ofbillboard advertising, cruelty to birds killed for their feathers, and thedrying-up of Niagara Falls for the sake of power companies. He and 40

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50 SUCCESS CLASSICSowner Cyrus Curtis refused advertising from patent medicine manufac-turers because there was no scientiﬁc basis for their concoctions, whichhelped build the case for US food and drug legislation. After editorialscalling for greater sex education to prevent venereal disease 75,000readers cancelled their subscriptions, but Curtis and Bok, believing itwas the right thing to do, persevered. After doing what he could to help the American war effort, Bokretired as editor of the Journal, 30 years after he had begun. On hisdeparture it was selling two million copies an issue, “the most valuablepiece of magazine property in the world.” It had become a nationalinstitution. In his retirement Bok wrote more books and became a philan-thropist, his endowments including the $100,000 American PeaceAward; the Harvard Advertising Awards; the Philadelphia Commission;and a chair in literature at Princeton University. The Ladies’ HomeJournal is still sold today.Final commentsA Dutch immigrant with little education who came to inﬂuence a gen-eration through the most prosaic of vehicles, a women’s magazine,Bok’s is a classic story of migrant success. The closest modern compari-son for his achievements would be Oprah Winfrey, who at a time whendaytime television was going further downmarket decided to promotebooks and reading. Like Bok, Winfrey did not give people what theywanted, but instead something a little higher. Such people do not justsell products, they are respected and loved. Bok’s early retirement (he was only 56) surprised everybody, but hewas determined not to go to the grave working. He felt that this was thefate of too many American men, and he admitted that he remained“European” in putting quality of life ﬁrst. While he considered that thegreatest thing about his adopted country was its idealism, its failing wasfavoring quantity over quality. While one part of him always kept an eyeon success through numbers, knowledge and art were what inspired him. Bok’s grandmother had given him the simple advice to “make theworld a better and more beautiful place because you have been in it.”With his emphasis on increasing the American people’s store of know-ledge and culture, Edward Bok certainly met his grandmother’s mea-sure of success. 41

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1948 The Magic of Believing“Gradually I discovered that there is a golden thread that runs throughall the teachings and makes them work for those who sincerely accept and apply them, and that thread can be named in a single word—belief. It is this same element or factor, belief, which causes people to be cured by mental healing, enables others to climb the ladder of success, and gets phenomenal results for all those who accept it. ” “Undoubtedly, we become what we envisage.” In a nutshell Every great thing starts with a thought and is powered into realization by a belief. In a similar vein James Allen As a Man Thinketh (50SHC) Joseph Murphy The Power of Your Subconscious Mind (50SHC) Florence Scovel Shinn The Secret Door to Success (p. 246) David J. Schwartz The Magic of Thinking Big (p. 240) Wallace D. Wattles The Science of Getting Rich (p. 282) 42

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CHAPTER 6 Claude M. BristolC laude Bristol was a hard-headed journalist for several years, including stints as a police reporter and as church editor of a large city newspaper. In this post he met people from everydenomination and sect, and later read hundreds of books on psycho-logy, religion, science, metaphysics, and ancient magic. Gradually,Bristol began to see the “golden thread” that runs through all religionsand esoteric teachings: that belief itself has amazing powers. Having spent years thinking about the power of thought, he hadassumed that others knew something about it too. He was wrong.Strangely, he found that most people go through life without realizingthe effect that strong belief can have on reaching their goals: they leavetheir desires vague and so they get vague outcomes. When Bristol was a soldier in the First World War, there was aperiod in which he had no pay and couldn’t even afford cigarettes. Hemade up his mind that when he got back to civilian life he would havea lot of money. In his mind this was a decision, not a wish. Barely aday had passed after his arrival back home when he was contacted by abanker who had seen a story about him in the local newspaper. He wasoffered a job, and though he started on a small salary, he constantlykept before him “a mental picture of wealth.” In quiet moments orwhile on the telephone, he doodled dollar signs on bits of paper thatcrossed his desk. This deﬁniteness of belief, he suggests, more than any-thing else paved the way for a highly successful career in investmentbanking and business. Bristol had learned the truth of philosopher William James’s state-ment, “Belief creates its veriﬁcation in fact.” Just as fearful thoughts setyou up to experience the situation you can’t stop thinking about (thebiblical Job said, “What I feared most had come upon me”), optimisticthoughts and expecting the best inevitably form favorablecircumstances. 43

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CLAUDE M. BRISTOLBelief and destinyNapoleon Bonaparte was given a star sapphire when he was a boy,accompanied by the prophecy that it would bring him good fortuneand make him Emperor of France. Napoleon accepted this as fact, andtherefore to him at least his rise was inevitable. Bristol tells the intriguing story of Opal Whiteley, the daughter of anOregon logger, who believed herself to be the daughter of Henrid’Orleans, a Bourbon with a claim to be King of France. There was adiary purportedly written by her describing her royal parents, althoughmost believed it to be a hoax. Nevertheless, when Opal was in hertwenties she was spotted in India, being pulled along regally in a car-riage belonging to the Maharaja of Udaipur; it turned out that she wasliving in the royal household. An Oregon newspaper man who hadknown Opal in her childhood remarked: “It was uncanny, almostsupernatural, the manner in which circumstances suited themselves toher plans.” This brings us to The Magic of Believing’s strongest message: thatvirtually anything can be yours, and you can be anything, if you areable to develop a “knowing” about it that you don’t ever need to ques-tion. Bristol says of Napoleon and Alexander the Great, “They becamesupermen because they had supernormal beliefs.” Your belief aboutyourself and your place in the world is arguably the main determinantof success.The subconscious servantIf you can understand the relationship between the conscious and thesubconscious mind, Bristol says, you will get to the core of beliefpower. The subconscious continually works to express our deepestbeliefs and desires. It is a faithful servant that renews, guides, andinspires, but to get the most from it requires great respect for and faithin what it can do. Because the subconscious operates in terms ofimagery, it is vital that we feed it mental pictures of what we desire. Itcan then go to work in living up to the image placed before it, by giv-ing us intuitions about what to do, where to go, who to meet. Somehow the subconscious is connected to all other parts of ourmind, and through the law of radiation and attraction it can attractevents and people to us that will assist in making our dreams reality.However, it will only ﬁnd ways to make the image real if that image is 44

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50 SUCCESS CLASSICSclear and convincing; hence the importance of the mental pictures ofsuccess that we feed it. The force of belief cannot really work in ourfavor until the belief becomes literally part of us, settled in the sub-conscious mind as a fact.Projecting thought and beliefBristol notes that all the great electrical scientists—Edison, Steinmetz,Tesla, Marconi—were interested in telepathy. It was not ridiculous tothem that thoughts could move through the air, that thoughts alonecould affect events if, like a good radio signal, they were strong andclear. Bristol borrows from New Thought principles to suggest that thereis intelligence in everything that exists in the universe and that we areall linked by a kind of universal mind. Jung had a similar idea with his“collective unconscious.” The force of your belief represents a trans-mitter to the universe that enters the minds of other people and eveninanimate objects. The more powerful your broadcast, the more likelythat the world will pick it up and react accordingly. It was not impossi-ble, said astronomer Sir Arthur Eddington, that the physical laws of theuniverse could be made subject to human thought, and modern quan-tum physics does not rule it out either. Bristol’s explanation is that a person with a strong belief will exist ata certain vibration that seeks its like in the form of matter. Thus hereaches the startling conclusion that we do not achieve deeply felt goalsby action alone, but are helped along depending on the quality andintensity of our belief that they will be achieved.The power of suggestionCharms, talismans, and good-luck pieces of any kind do not on theirown bring good fortune, Bristol comments, it is the belief in their efﬁ-cacy that is powerful. Why do people chant, repeat afﬁrmations, bangdrums, or count beads? Repetition is another way to implant a sugges-tion in our minds, the “white magic” that enables us to turn a wishinto an expectation. By ritualizing it, by giving it structure, the ideachanges from being a mere wish to being imminent reality. We givethanks for what is or is about to be. The “terriﬁc force of thought repe-tition,” Bristol says, ﬁrst overcomes reason by acting on our emotions 45

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CLAUDE M. BRISTOLand then penetrates into the subconscious, where it is only a matter oftime before the thought is enacted. This, of course, is the principlebehind successful advertising and propaganda. Bristol includes a warning about misuse of the mental technologyassociated with strong belief and suggestion: It is a power to be usedconstructively, not to achieve dominance. His book is dedicated to“independent thinkers of all times” who wish to use belief for creative,life-afﬁrming ends. He talks a great deal about the power of belief toheal physically, for instance.Final commentsMaxwell Maltz, author of Psycho-Cybernetics (see 50SHC), said, “Thelaw of mind is the law of belief itself.” By this he meant that belief,more than anything else, is what makes us tick. It is the great shaper ofwho we are. Think of some of the great belief systems in history: Buddhism,Christianity, Islam, communism, capitalism. For good or ill, these sys-tems of thought became beliefs that have shaped our world. Are thebeliefs you have about yourself strong enough to change your world? The Magic of Believing is repetitive, rambling, its references aredated, concrete tips for employing its ideas are few, and you may ﬁndyourself saying, “Get to the point.” Some readers will also be turnedoff by the unscientiﬁc nature of the book, which contains little biblio-graphic foundation. Yet the strange thing about it is that it can revealmore on second, third, or fourth readings. Bristol knew, after all, thatancient esoteric writings were often purposely opaque to shield theirsecrets from the uninitiated or those who might abuse them. You maynot love reading this book, but merely having it around could serve asa valuable reminder of the power of belief. It may also be difﬁcult to stomach some of the “mind stuff,” as theauthor calls it. He himself was skeptical, but then realized that we allsummon the magic of believing when we desperately want somethingto come into being. The pianist Liberace was said to have turned hislife around after reading The Magic of Believing. And in a chapter on“Women and the science of belief,” Bristol evokes the names of MarieCurie, Mary Baker Eddy (founder of Christian Science), FlorenceNightingale, Harriet Beecher Stowe (author of Uncle Tom’s Cabin), andactress Angela Lansbury as examples of people who drew on the power 46

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50 SUCCESS CLASSICSof believing to achieve great things. Lansbury told an interviewer,“When you’ve learned how to draw on your subconscious powers,there’s really no limit to what you can accomplish.” The mental powersof these women were tremendous, yet we can develop their same“belief intelligence” for our own lives.Claude M. BristolBorn in 1891, Bristol served as a soldier in the First World War inFrance and Germany. He worked on the army newspaper Stars andStripes until 1919. The Magic of Believing was written, Bristol says, for ex-service menand women who would have to adjust to civilian life and try to pros-per. It was published when he was in his ﬁfties and followed the successof a booklet entitled TNT: It Rocks the Earth. Bristol was a popular speaker to clubs, business organizations, andsalespeople. He died in 1951. 47

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1995 Buffett“On Wall Street his homespun manner made him a cult ﬁgure. Where ﬁnance was so forbiddingly complex, Buffett could explain it like a general-store clerk discussing the weather. ” “Buffett’s genius was largely a genius of character—of patience,discipline and rationality. These were common enough virtues, but theywere rare in the heat of ﬁnancial passions, and indispensable to anyone who would test his mettle in the stock market. In this sense, Buffett’s character and career unfolded as a sort of public tutorial on investing and on American business. Buffett was aware of his role from the verybeginning, and he nurtured a curious habit of chronicling his escapades even as he lived them.” In a nutshell Genuinely successful investment requires both courage and character. In a similar vein George S. Clason The Richest Man in Babylon (p. 68) Benjamin Franklin The Way to Wealth (p. 108) John Paul Getty How to Be Rich (p. 120) Robert Kiyosaki Rich Dad, Poor Dad (p. 172) 48

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CHAPTER 7 Roger LowensteinC urrently the second wealthiest person in the world, Warren Buffett is also arguably the greatest investor in history. In ﬁve decades, he has parlayed a stake of less than $100,000 into$35 billion. Shares in his company Berkshire Hathaway are now trad-ing at over $70,000 each, and Buffett himself has 474,998 of them—none of which he has ever sold. His investing strategies have been written about extensively, butwhat broad lessons for success can we draw from the man himself?Lowenstein’s biography Buffett: The Making of an American Capitalistis the only serious full-length portrait, and it is from this richly enjoy-able book that we glean the following.The seeds of a fortuneOmaha, Nebraska was wilderness until the 1850s, but grew into atown once Abraham Lincoln designated it the eastern terminal of theUnion Paciﬁc Railroad. Boiling in summer and freezing in winter, it hada reputation as a cultural wasteland. The Buffetts had been in Omaha for over a century when WarrenBuffett was born in 1930, into modest circumstances. Buffett’s fatherHoward had wanted to be a journalist but worked in a bank, whichretrenched him in the Depression. The family had so little money thatWarren’s mother often skipped her dinner to give her husband a fullportion. This period of lack apparently had a big effect on Warren. Thesecond of three children and the only son, he was obsessed with num-bers and facts and confessed very early on his desire to be rich. Afavourite boyhood book was One Thousand Ways to Make $1000. Howard Buffett eventually ran a successful stock brokerage and alsoachieved a surprise election to Congress in 1942 as a Republican.Young Warren hated living in Washington, but took pleasure inbuilding up paper routes that, while he was still a teenager, were bring-ing in $175 a week (a regular adult wage); the $6,000 he saved was thefoundation of his fortune. 49

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WARREN BUFFETT He did well in school, coming 16th out of 374, and attended theWharton School of Finance at the University of Pennsylvania. Heapplied to Harvard for further study, but was turned down. Thisproved to be a great blessing in disguise, because his second choice,Columbia, was the academic home of Benjamin Graham, the geniuspioneer of stock market analysis.Entering the frayUntil Graham, stock picking had basically been gambling, but the pro-fessor gave it a methodology that the young Buffett instantly “got.” AsLowenstein puts it: “Investing without Graham would be like commu-nism without Marx—the discipline would scarcely exist.” Graham’smethod was the opposite of speculation: he looked for the underlyingvalue of a stock and for discrepancies between this value and the stockprice. If you bought a stock very cheaply, it could be virtually free ofrisk. The emphasis on research, analysis, and looking only to the factsof a business suited Buffett’s personality perfectly; he could workalone. Although Buffett’s father warned him against entering the stockmarket, he started working in his father’s brokerage. He also took aDale Carnegie seminar in public speaking and at age 21 was giving anight course at the University of Omaha on investment principles—tofortysomething professionals. Later he went to work for Graham’sinvestment fund in New York, but knew that he wanted to work forhimself, with his own fund, and went back to Omaha. Begun with his own capital and that of local Omahans, by the endof the third year Buffett’s ﬂedgling fund had doubled in value; after ﬁveyears, when the Dow stock market index had risen 74 percent, the fundhad increased by a remarkable 251 percent. Before he was 35, Buffett was managing $22 million and had apersonal net worth of $4 million. In the 1960s this was rich. Yet hislife hardly changed at all. He continued to live in the same unimpres-sive house he had bought in the 1950s for $31,500, and asked hiswife Susie to buy a better car than their VW because “it looked badwhen he picked up visitors at the airport.” His drab ofﬁce accommo-dation was on the same street where he lived, and he worked in totalsecrecy. 50

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50 SUCCESS CLASSICSInvesting styleA large part of Buffett’s success came from the fact that he did notthink like the crowd. The key to being a good investor was to recognizethe value of things when “everyone” knew that they weren’t worthmuch. He never worried if the market price of a stock he had boughtexperienced a big drop, because it was obvious to him that the funda-mentals would see it rise again. Indeed, as the 1980s boom got under way, the shares that Buffetthad bought dirt cheap during the Nixon years of stagﬂation began torise. By 1983 he had entered the Forbes list of richest Americans andhis “value investing” had begun to attract a great deal of attention. Inan off-the-cuff talk, he said: “I will tell you the secret of getting rich on Wall Street. [Pause] Close the doors. You try to be greedy when others are fearful and you try to be very fearful when others are greedy.”This contrarian approach took guts, but Buffett was unwilling to go theeasier but less ethical route of unfriendly takeovers, greenmailing (hold-ing ﬁrms to ransom by buying up their stock), or dealing in junkbonds. A good example is his acquisition of a portion of theWashington Post, the paper that had uncovered the Watergate scandal.The stock was selling as if the company was worth $100 million, butits assets were worth four times that. The political side of it appealed toBuffett, and he made a lifelong friendship in its president, KatherineGraham. In terms of return, Berkshire’s initial $10 million investmentin this company became $205 million at the time Lowenstein was writ-ing, and in 2003 the stake was worth $1.3 billion. Such a jump in value is not uncommon for one of Buffett’s com-panies. As an investor he is a purist in his belief that the state of theeconomy or political worries should never affect your decisionsabout whether to buy a stock. Forecasting, he feels, is a waste oftime—his job is to analyze a company, not an economy. When judg-ing a company, Buffett cares less about its growth prospects or evensize of profit; what he focuses on is the return on investment, orpercentage profit on each dollar invested. “I’d rather have a $10million business making 15 percent than a $100 million businessmaking 5 percent,” Buffett has said. “I have other places I can putthe money.” 51

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WARREN BUFFETT Buffett is a risk taker in the sense that he has been willing to bet aquarter of Berkshire Hathaway on one stock, but not a gamblerbecause he looks only for “sure-ﬁre things.” He imagines the stockmarket being like having a lifetime punch card on which you’re onlyallowed 20 holes. With such a restricted choice, you would make surethat the stocks you did invest in were right. What is most radical about Buffett is that once he chooses a stock, hehangs on to it. Selling a stock you have held for a long time, he says, is“like dumping your wife when she gets old.” In short, he highlights thedifference between the true investor and the trader. As Lowenstein puts it:“Buffett had always craved, and had always felt enriched by, continuity: to work with the same people, to own the same stocks, to be in the same businesses. Hanging on was a metaphor for his life.”Some of his larger stakes have included See’s Candy, the media compa-nies Capital Cities and ABC, Disney, Gillette, Wells Fargo, Coca-Cola,Salomon Brothers, insurer GEICO, and reinsurer General Re. Noticethat none of these is a technology stock. When the dot-com boom gotinto full swing, Buffett was accused of being “past it” because he neverinvested in technology companies. It was thought that Berkshire wouldbe badly affected by only investing in “old-economy” stocks. Buffettprotested that “he had never seen an electron” and stuck to the sameinvesting formula he had always employed. His investing approach hasnow, of course, been validated.Personal traitsIn contrast to mutual fund supremos like Peter Lynch, Lowensteinobserves, Buffett seems like something from another era. He has no com-puter in his ofﬁce (“I am a computer,” he once told an interviewer) oreven a calculator, and spends most of his time reading (annual reports,newspapers) or talking with business partners and old friends. His “oneconcession to modernity,” Lowenstein notes, is a private jet dubbedIndefensible. Buffett acquired it only because he got tired of people ask-ing him for stock tips when he was ﬂying economy on commercial ﬂights. His favorite food is the cheeseburger, and he is famous for guzzlingCherry Cokes. Lowenstein says that Buffett’s focus is so great that heeither doesn’t notice or doesn’t have time for things that we normally 52

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50 SUCCESS CLASSICSassociate with a well-rounded person. On a trip to Paris he wasn’t theleast interested in sightseeing, and he stays at his beachfront home inLaguna Beach in California for weeks on end without going near thewater. He is continually amazed by the magic of compounding interest,and when his wife spent $15,000 on refurnishing their house, Buffettcomplained to a golﬁng partner, “Do you know how much that is ifyou compound it over twenty years?” When his wife Susie decided to move to San Francisco to pursue hersinging career, Buffett was devastated, but they have never divorced,still go on vacations together, and she accompanies him to importantgatherings. He has a girlfriend, Astrid Menks, whom Susie alreadyknew, and the three of them apparently function in this unusual situa-tion as if it were totally normal. Buffett’s great dislike is change, and aswith the companies he invests in, the people around him are “forkeeps.” His three children, now adults, remember him up in his study withgreenback wallpaper (“the temple”), always reading. The rest of thefamily seem to have excused him from most normal fatherly activities,but he encourages his children to do what they love rather than chasingmoney. The chapter on the younger Buffetts’ relationship with theirfamous father is fascinating reading.Citizen BuffettFor a self-made billionaire, Buffett is unusually liberal. He quit theOmaha Rotary Club (of which his father had been president) becausehe thought it racist and elitist, and also boycotted a local country clubbecause it denied membership to Jews. Living in a predominantly whiteneighborhood, his household was also unusual in 1960s America inthat he and Susie often entertained black Americans. Lowenstein writes: “Unlike his isolationist and antigovernmentfather, Warren recognized a need for government.” He does not railagainst regulation, and privately thinks that taxes for the rich should beraised. He feels that the energy people put into paying less tax divertsthem from their real jobs in life. In one of his famous annual letters toinvestors, he wrote that the goal of investment is not to pay the leastmoney to the government, but to come away with “the largest after-taxrate of compound.” Knowing that you have to pay tax should makeyou more careful in the investments you make. 53

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WARREN BUFFETT When Buffett is asked what needs to be done to reform the welfaresystem, he prefers to talk about “welfare for the rich.” He dislikesstock options for executives because they are overgenerous at theexpense of the shareholder. Many CEOs, with their hugely inﬂatedcompensation packages, are “wards of the corporate state”—not truecapitalists, he feels, but bureaucrats. Buffett also warned of corporateexcesses a couple of years before Enron and other supposed corporategiants fell.Final commentsAlthough it needs updating to take account of Buffett’s moves over thelast ten years, why is Lowenstein’s portrait of the great investor still soenjoyable? If you know nothing about investment, the book can edu-cate you while telling a compelling story of one of the great minds ofour time, and this commentary can only provide the skeleton of thatstory. Get the book for the details. Buffett is interesting because the way he lives and works is moreakin to the style of an artist or philosopher: Berkshire Hathaway is his“canvas” and his relationship with his partners he sees as a sacredtrust. Those who have invested with him tend to keep their shares fordecades and consider themselves members of a “privileged tribe,”Lowenstein notes. Benjamin Graham said that one of the three important elements of asuccessful investor was “ﬁrmness of character.” Buffett has this inspades, because his style of investment has required him to stick to hisconvictions. As Lowenstein correctly notes, Buffett is so attractivebecause his value investing goes hand in hand with ideas like loyalty,integrity, and keeping things for a long time. These seem out of stepwith our era, yet they prove their worth in their results. The Buffett Foundation will be the richest charity in history, givingaway at least $1 billion a year, but only after Buffett and his wife die.Why wait, when there are so many problems in the world now?Characteristically, he believes that the magic of compound interest willmake his foundation even richer in a couple of decades and it willtherefore be able to do more. 54

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50 SUCCESS CLASSICSRoger LowensteinWhile himself the owner of Berkshire Hathaway stock, Lowenstein didnot interview Buffett for the book, talking only with Buffett family,friends, and business associates. A Wall Street Journal reporter,Lowenstein lives in New Jersey with his wife and three children. His other best-known book is When Genius Failed, on the rise andfall of the mutual fund Long-Term Capital Management. 55

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1920The Autobiography of Andrew Carnegie“ No kind action is ever lost. Even to this day I occasionally meet menwho I had forgotten, who recall some triﬂing attention I have been able to pay them, especially when in charge at Washington of governmentrailways and telegraphs during the Civil War, when I could pass peoplewithin the lines—a father helped to reach a wounded or sick son at the front, or enabled to bring home his remains, or some similar service. I am indebted to these triﬂes for some of the happiest attentions and the most pleasing incidents of my life.” “My advice to young men would be not only to concentrate their whole time and attention on the one business in life in which they engage, but to put every dollar of their capital into it… As for myself my decision was taken early. I would concentrate upon the manufacture of iron and steel and be master in that. ” In a nutshell Be voracious in your learning, and ensure that others beneﬁt from your intellectual and monetary wealth. In a similar vein Henry Ford My Life and Work (p. 102) Benjamin Franklin Autobiography (50SHC) John Paul Getty How to Be Rich (p. 120) 56

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CHAPTER 8 Andrew CarnegieA ndrew Carnegie’s grandfather had been the ﬁrst to establish a small lending library in Carnegie’s native Dunfermline, Scotland, at a time when there were no public libraries. As humble linenweavers his family was far from well off, but the love and respect forbook knowledge made a permanent mark on young Andrew. Later,when he was rich, libraries were the obvious choice for his largesse andreceived massive endowments. Though not very well educated himself, Carnegie appreciated thevalue of an open mind. Like Benjamin Franklin, he knew that “leadersare readers” and that wealth is created from deeper knowledge and bet-ter thinking. When his ﬁrst donated library came to be built, he wasasked for his coat of arms to put above the entrance. He didn’t haveone. Instead, he asked for a plaque portraying the sun and its rays andthe words “Let there be light.”The Carnegie story in briefBorn in 1835, Carnegie enjoyed his childhood in the bosom of anextended family. His father moved the family to the United States whenhe was in his early teens, but Carnegie’s accent and love of all thingsScottish never left him. In Pittsburgh he obtained employment as a telegraphist and a rail-way clerk, and made his way up through the Pennsylvania RailroadCompany. When the Civil War erupted, he was asked to take charge ofUS government railways and telegraphs, which he did with distinction.He was a republican and opposed slavery, and this was his great oppor-tunity to serve the cause. In addition to his huge capacity for work and a way with people,Carnegie chose his vocation well. America’s railroad system was inrapid expansion, and he comments that “a manufacturing concern such 57

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ANDREW CARNEGIEas ours could scarcely develop fast enough for the wants of theAmerican people.” After selling the largest iron and steel works in the United States, hebecame the richest person in the world. He spent his retirement years athis beloved Skibo Castle in Scotland, and died in Lenox, Massachusettsin 1919. His will left over $100 million for building public libraries through-out the US and Britain, and provided large gifts to universities. Thepeace-loving Carnegie was saddened by the outbreak of the First WorldWar, and also endowed institutions that would promote peace andresearch the causes of war.Carnegie’s tips for work and life successInvest in yourselfCarnegie disliked speculation in stocks. He thought it a much betterinvestment to choose an industry, learn everything about it, and investin your own business: “I believe the true road to preeminent success in any line is to make yourself master in that line. I have no faith in the policy of scattering one’s resources, and in my experience I have rarely if ever met a man who achieved prominence in money-making… who was interested in many concerns.”This is the power of focus, of sacriﬁcing what you might gain bybroadening in order to gain a smaller but well-deﬁned market.…but spread the riskBecause of his great success at so young an age, Carnegie developed thereputation of being fearless and reckless in business. This image, hesays, could not have been further from the truth. In fact, he neverrisked his own capital or that of his partners to any great degree:“When I did big things, some large corporation like the PennsylvaniaRailroad Company was behind me and the responsible party.” You don’t have to risk everything to think and act big. Carnegie’slesson is to get another party to carry the risk and use its reputation toassist your enterprise. 58

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50 SUCCESS CLASSICSSuccess comes from openness and treating people wellCarnegie sought to create transparency in the management of all hisindustrial plants. He kept them very well ordered and clean and wel-comed government inspectors. He always sought good relations withhis labor force, and generally gave employees what they wanted, withinreason. The famous Homestead plant strike in which several men diedoccurred while he was away in Scotland, and it is unlikely that it wouldhave happened if he had been there. He made many of his staff rich. Plant manager Charles Schwab wasthe ﬁrst person in American to be paid $1 million a year. In NapoleonHill’s Think and Grow Rich, Hill notes that this huge sum was not forSchwab’s technical expertise but for his superb ability to motivate. Likeall great successes, Carnegie was a student of human nature and knewthat effectively channeling a work force’s energies was the mark of atrue leader. He noted: “I did not understand steam machinery, but Itried to understand that much more complicated mechanism—man.”Be master of your mood “A sunny disposition is worth more than fortune. Young people should know that it can be cultivated; that the mind like the body can be moved from the shade into sunshine.”Read those three lines again. Carnegie’s simple statement encapsulateshundreds of self-help and success books.Public speaking is just speakingCarnegie had two rules for speaking:1 Talk to people, not at them.2 Be yourself, don’t try to be an “orator.”Remember Carnegie’s advice and you won’t have to take any expensivecourses. It should be added that in order to “be yourself” you have tohave spent time working out who you are and what you stand for.Oration suggests stating the world as you would like it to be. Speakingcomes from the heart, which is always true. 59

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ANDREW CARNEGIEEnlarge your circleCarnegie’s friends included Judge Mellon, Matthew Arnold, JamesBlaine, William Gladstone, President Harrison, Mark Twain, andHerbert Spencer. These relationships were not cultivated so that hecould name-drop, but so that he could learn directly from their uniqueknowledge and experience. Always seek out interesting people.Seek knowledge and value, not money aloneOne evening in 1868, aged 33, Carnegie wrote a memorandum to him-self while living at the St. Nicholas Hotel, New York. He began thememo with “Thirty three and an income of $50,000 per annum!” andthen stated that he could organize his business affairs so as to bring inthe same sum annually, while spending the surplus on “benevolent pur-poses.” Getting more philosophical, he wrote of his intention to retireat 35 and henceforth devote his life to reading and study. Of course hedid no such thing, but in these words you have the seeds of his laterphilanthropy. Knowledge gained from reading and study representedreal value; a good life was one that truly opened the mind. Moneyalone was worthless.Travel to broaden your mindCarnegie loved travel, particularly when it had an element of adven-ture, and urged others to see more of the world. His book AnAmerican Four-in-Hand in Britain chronicled a journey on horse andcart the length of the country. In his travels he tried to learn deeplyabout the cultures he encountered, for example while in China he readConfucius and in India the thoughts of Buddha and Zoroaster. Suchrespect for all religions was characteristic of Carnegie’s open-mindedness, and also of his belief that seeing new places gives people agreater appreciation of the whole.Final commentsIn its modest tone, the book reminds the reader of Benjamin Franklin’sautobiography, and like Franklin’s amazes in the story of what a personfrom very average beginnings can achieve in one lifetime. You almosttire of the detail on those who helped him and became his mentors, andalthough single-minded, a driven and at times ruthless man, Carnegiewas always eager to repay favors and share his success. He speaks with 60

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50 SUCCESS CLASSICSgreat fondness of his childhood and was devastated when his motherand brother, both of whom had been instrumental in his success, diedof typhoid fever, but his late and happy marriage gave him a fresh leaseon life. Carnegie’s massive endowment of libraries was one of history’s greatacts, and his name is now more closely identiﬁed with the money hegave away than the money he made. His story suggests that the amass-ing of wealth by a single individual, if that person has high motives, isone of the best ways to change the world for the better. 61

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1992 Thick Face, Black Heart “One of the results of reading this book will be the shattering of your traditional concepts of ruthlessness. Thick Face, Black Heart is notabout ruthlessness. You will learn that by adapting and adopting a formof non-destructive ruthlessness, you will gain the freedom necessary to ” achieve effective execution of your life’s tasks. “The ﬁrst superﬁcial exposure to Thick Face, Black Heart is oftenshocking and repellent because it can serve the criminal as easily as the saint.” In a nutshell Reclaim the “killer instinct” as a natural part of who you are. In a similar vein Baltasar Gracian The Art of Worldly Wisdom (p. 132) Thomas J. Stanley The Millionaire Mind (p. 258) Sun Tzu The Art of War (p. 270) 62

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CHAPTER 9 Chin-Ning ChuI n 1949, as Mao’s communist army closed in on Shanghai, a family boarded what was to be the last commercial ﬂight out of China. Chin-Ning Chu, only three years old, had been born into a world ofafﬂuence, but when she and her family landed in Taiwan they wouldhave to start all over again. In her early twenties she moved again, this time to the United States.Two books accompanied her: Sun Tzu’s famous The Art of War and amore obscure tome by Lee Zhong Wu, Thick Black Theory. There wassomething in this latter book that Chu knew was important. Publishedin 1911, she describes it as a “frank discussion of the uses of ruthless-ness and hypocrisy” that was such a challenge to the powerful that itwas quickly banned. The book would become an important source forChin-Ning Chu’s unique philosophy of life and business, expressed inThick Face, Black Heart: The Asian Path to Thriving, Winning andSucceeding.Thick faceWhat does the “thick face” part of the title mean? Chu simply com-bined the Asian concept of face (i.e., saving face) and the western con-cept of a thick skin to make “thick face,” meaning a self-image thatallows us to brush off criticism. She observes that if you are willing tohave people not like you, you will go far. Chu notes that “the world has a tendency to accept our own judg-ment of ourselves.” If you exude self-conﬁdence, people will naturallywant to let you succeed. Self-doubt creates a perception of incompe-tence. The example given is of Colonel Oliver North and the Iran-Contra affair. Because he never doubted that his actions were those of apatriot and not a criminal, the public and the courts eventually believedhim. “A man less convinced of his own righteousness would have been 63

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CHIN-NING CHUseverely punished for his crimes and ostracized by the public.” What you believe about yourself, the world will believe about you.Black heartWhile the concept of thick face relates to how others see you, the ideaof black heart is about achieving your ends. The black-hearted person may seem as if they lack compassion; how-ever, compassion can be shortsighted. If a boss cannot bring himself tomake a few employees redundant, Chu says, he may witness the collapseof the whole business. Sometimes, to keep to your goals and achieve aresult that is better overall, you have to be perceived as “bad.” Appreciate that everyone has a killer instinct, and that sometimes wemust draw on it. There is a direct correlation, Chu writes, betweenwillingness to use your killer instinct and your success in life. There are degrees of “thick face, black heartedness.” Some will do any-thing to achieve a result, not caring about the effect on others. This is theblack heart of con men and the wicked, who eventually understand thatmost of their failures are due to their own character defects. The higherlevel of black heart is reached when you are not driven by your short-comings or emotions, taking action that is driven by your true spirit. “Contrary to common understanding, a good man’s actions are not always gentle. They may be ruthless, cold and dispassionate.”Chu notes that the best surgeons are those who concentrate on the taskat hand, minimizing pain for the patient. They are cruel to be kind.This is the “way of the warrior.”Darkness and lightAcknowledge that all human beings are a combination of darkness andlight. The universe is full of opposites requiring an “other” to exist. Tohave the necessary drive to live life to the full, you must appreciate andutilize all aspects of your character. If you like to present yourself assugar-coated, you will lose out on any opportunities that may requireyou to seem sour or hardened. If you are a naturally negative thinker, make the most of it and don’ttry to adopt false positivity. Don’t fall into the trap, Chu says, of think- 64

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50 SUCCESS CLASSICSing that you must change yourself before you will have success. Youcan succeed just the way you are. The problem with “virtue” is that it can lead to stern or even violentrighteousness. If someone considers themselves virtuous, they have laidthe ground for a witch-hunt of people they consider to be lacking invirtue. The thick face, black heart practitioner knows that virtue is aconstruct; what matters is whether a person has the courage to expresstheir full personality in their life and their work.Deception without deceitIn the West people have drummed into them the concepts of good andevil, black and white. But the reality, which most Asian people accept,is that there are shades of gray. You need to learn that you can be good at the art of deception with-out being deceitful. You must also appreciate that sometimes, toachieve something great and worthy, it is difﬁcult not to bring an ele-ment of deception into your actions. The book highlights Abraham Lincoln (see also p. 186), who in hisslow ascent to power followed the majority opinion about segregationand slavery. He knew that if he had not, he would not have gainedpower. However, with a solid electoral victory behind him he made thefamous Gettysburg address proclaiming that “all men are createdequal.”DharmaThe word dharma comes from Sanskrit and means “to support, upholdand nourish.” It is the natural law that makes the world hang togetherin its divine coherence. At the personal level, dharma is the duty that is yours to fulﬁll inyour lifetime. You cannot be a soldier and refuse to ﬁght; you cannotbe a doctor and refuse to operate. If you are a writer, you can’t work ina bank. Once you commit yourself to your duty, the universe has a wayof protecting you and freeing you from other worries. Adharma is going against your purpose in life, which only gives youand the world misery. Chu looks at the former leaders of the Philippinesand Pakistan, Corazon Aquino and Bhenazir Bhutto. Aquino adoptedthe patriarchal style of her martyred husband, Bhutto the hard-line style 65

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CHIN-NING CHUof her father. Neither approach was right for the times in which theygoverned, and both women ultimately failed. They did not create theirown political style, forgetting the dharmic lesson to “be yourself.”YieldingOne of Chu’s main points is that to survive and thrive “amid the cun-ning and the ruthless,” you have to acquire the ability to yield. A thickface, black heart person will not always hit back if struck. They mayjust accept the blow if it means that by appearing to yield it will helpthem to achieve their ends. Gandhi’s powerful nonviolence is a goodexample. In the Asian world, Chu says, “heroes are not judged for theirprowess in hunting and shooting tigers, but rather for their strengthand ability to endure the humiliation of being pigs.” Ditch pride and preciousness if you want to succeed.WealthThe Chinese character for wealth is composed of two symbols: aseashell, an ancient symbol of trade, and a symbol that literally trans-lated means “brilliance,” but implies the uniqueness that each of us hasin terms of a talent or ability. Wealth therefore comes from selling whatis unique about you (in terms of a product or just you as a person).Although money itself is a mystery, whatever best expresses your bril-liance will inevitably lead you to wealth. It will free you from povertyand give you a mindset that attracts abundance.Final commentsWith its strange title and compelling mixture of spirituality and ruth-lessness, Thick Face, Black Heart was always going to stand out. Itspublication was not so much a breath of fresh air but a quake thatshook up much of the conventional thinking about personal success.Many American success authors had dabbled in eastern wisdom andincorporated it into their books, but Chin-Ning Chu grew up withChinese culture and only later imbibed western inﬂuences. Only some of the broad ideas of Thick Face, Black Heart can beconveyed here. Read it for the inspiring stories of leadership and 66

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50 SUCCESS CLASSICSendurance and for the author’s anecdotes of business and personal lifein America and Asia. Some will ﬁnd the book distasteful. When the author retells beingbetrayed by an associate, you may wonder whether she attracted theseevents to herself by her own “black heart” and self-confessed arro-gance. Possibly, but the overwhelming effect of the book is positive.Many people decide that to get ahead in life it is easiest to go by oth-ers’ rules. This does work for a time, but the result will be a rathershriveled-up person. The philosophy of Thick Face, Black Heart allowsyou to reclaim the dark power inside and wed it to utter convictionabout the person you are and the work that is right for you to do.Chin-Ning ChuBorn in Tienjin, China, Chu was brought up a Catholic but was alsoimmersed in Buddhist, Taoist, and Confucian teachings. She grew up inTaiwan but moved to the United States in 1969. A respected commentator on US–China and US–North Korea rela-tions, she lectures, trains, and consults around the world. Chu ispresident of Asian Marketing Consultants and chairperson of theStrategic Learning Institute, an educational ﬁrm. Her other books include The Asian Mind Game, The Secrets of theRainmaker, The Working Woman’s Art of War, The Bridge to thePaciﬁc Century, and Do Less, Achieve More. 67

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1926 The Richest Man in Babylon “ In old Babylon there once lived a very rich man named Arkad. Farand wide he was famed for his great wealth. Also he was famed for his liberality. He was generous in his charities. He was generous with hisfamily. He was liberal in his own expenses. But nevertheless each year ” his wealth increased more rapidly than he spent it. In a nutshell The principles of wealth building are free to all, but only a minority use them to their advantage. In a similar vein Warren Buffett (by Roger Lowenstein) Buffett (p. 48) Benjamin Franklin The Way to Wealth (p. 108) Robert Kiyosaki Rich Dad, Poor Dad (p. 172) Thomas J. Stanley The Millionaire Mind (p. 258) 68

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CHAPTER 10 George S. ClasonB abylon was once the richest city in the world, known for its lav- ish houses, palaces, and huge city walls. It created fertile farm- land where once there had been desert through the use ofirrigation. But as George Clason notes in a historical sketch at the endof The Richest Man in Babylon, it was also the cradle of modernﬁnance: money as the means of exchange, tradable property titles,promissory notes, and all forms of lending and borrowing were highlydeveloped. Its prosperity continued for centuries because its inhabitantswere allowed to make money freely. Even slaves, if they could earn abit on the side, could eventually buy their way to freedom. Babylon’s success inspired Clason to write a series of fables thatwould demonstrate the unchanging principles of ﬁnance and wealthbuilding. They became very popular and were distributed by banks,insurance companies, and other employers to teach the beneﬁts of sav-ing and hard work. “The Richest Man in Babylon” was one of thesestories, and they were later collected into the inspirational classic weknow today.Escaping mediocrityIn the book’s ﬁrst story, two friends—a chariot builder and amusician—reﬂect on where their working lives have taken them.Though pleased to have wives and young families, they struggle tomake ends meet and wonder if there could be another way. The conversation turns to a man they grew up with, now consideredto be the richest man in Babylon. His name is Arkad, and they resolveto go to see their old friend and seek his advice. They ask Arkad howfate has come to make him rich. He immediately rebukes them forassuming that “fate” has contributed anything to his success, tellingthem that they have only remained poor “because you have either 69

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GEORGE S. CLASONfailed to learn the laws that govern the building of wealth, or else youdo not observe them.” While still a boy, Arkad had noticed that wealth, if it did not actu-ally create happiness, certainly enhanced the quality of life. It made itpossible to furnish a house well, wear good clothing, build temples forthe gods, sail the seas, or eat exotic food from distant lands. Heresolved that his lot would not be that of the poor man, but that hewould make himself “a guest at the banquet of good things.” Yet with no inheritance due to him, he realized that he would haveto put effort and study into the ways of wealth. He started a job as ascribe, laboring long and hard writing laws and other things on claytablets. One day, in return for a particularly difﬁcult task on which hehad to work through the night, Arkad asked the client, a money lender,if he would teach him some of the secrets of money.Paying yourself firstThe man agreed, and in the morning revealed this principle: “A part ofall you earn must be yours to keep.” Arkad felt a little short-changed atthis, since he felt that it was obvious—wasn’t all you earned yours tokeep? Living expenses quickly eat up whatever you earn, the moneylender observed, which means that you become a slave to your workand earn merely to survive. However, by putting aside at least 10 per-cent of your earnings and marking that off as “not for expenditure,”over time this amount builds and starts earning money for you, withoutyou having to do any work. It matters little how much you start with,as long as you observe the rule to pay yourself ﬁrst out of whateveryou earn. You will soon not even notice the absence of this smallamount. After some setbacks, Arkad’s savings grew to a satisfying amount.This pleased the old money lender, to the extent that he asked theyoung man to run part of his large estate. Later he shared in its proﬁts.The lesson: Those who know the laws of money seek each other out.While many pay lip service to ﬁnancial principles, the principles neverwork for them because they don’t take action. Yet the money lender’s advice is not that of a penny pincher. Hecounsels Arkad to enjoy life and not strain to save too much, as long ashe is continually increasing his pot of saved money. 70

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50 SUCCESS CLASSICSWisdom or gold?If you had a choice of gold or wisdom, which would you choose? Wecatch up with the rich man Arkad later in the book, when his sonNomasir has grown up and is ready to inherit his father’s fortune.However, the father ﬁrst wants his son to go out into the world andlearn how to make money on his own. He is given three bags of gold as a head start, plus a clay tablet with“the ﬁve laws of gold” engraved on it. Not surprisingly, Nomasir payslittle attention to the tablet. His ﬁrst use of the money is to bet most ofit on a horse-racing scam (he loses most of that), followed by purchas-ing a shop with someone he doesn’t know well (it folds). As his situa-tion grows desperate, he remembers the clay tablet and its ﬁve laws. Inbrief, they are:1 Money comes to those who save.2 Money multiplies for those who invest it.3 Money stays with the person who entrusts it to wise people.4 Money is lost when invested in things with which you are not familiar.5 Money is lost at a fast rate by pursuing get-rich-quick schemes.Realizing that he has violated these laws, Nomasir learns them byheart. He goes on to earn money and invest it wisely. Ten years later hereturns to his father, who has laid on a feast. He places on the tablethree bags of gold: one is to repay the money his father had originallygiven him, but the other two, he says, are for the wisdom on thetablets. He says to those gathered: “Without wisdom, gold is quickly lost by those who have it, but with wisdom, gold can be secured by those who have it not.”Someone who does not know the laws may enjoy windfalls, but theyare likely to lose the money just as quickly. The ﬁve laws not only helpyou build wealth, but if you follow them they protect you from losingwhat you have built.Living within your meansOne of the important messages of the book, particularly for our age ofhigh debt, is that as well as “paying yourself ﬁrst,” at the same time 71

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GEORGE S. CLASONyou should pay off your debts. Thus, 10 percent to yourself, 20 percentto your debtors on a pro rata basis, and the rest to live on. Many peo-ple are put off saving because they think ﬁrst about the weight of theirdebts. But as soon as you see the growth of your unspent cache ofmoney, it will motivate you to add to it. “Touch not the one tenth thatis fattening the purse.” In an amusing twist, the book follows the discovery of ﬁve claytablets by an archaeologist working in Mesopotamia (the area whereBabylon was located). They are sent to a professor for translation, andsomething strange happens. The professor and his wife apply the lawsof the 2,000-year-old tablets to their own lives, and their ﬁnancial situ-ation is turned around. The professor observes in a letter: “Who wouldbelieve there could be such a difference in results between following aﬁnancial plan and just drifting along?” Although it seems obvious, the richest man in Babylon got that waybecause he lived within his means. In time, anyone who can live on 80or 90 percent of their income can become rich.Final commentsAs with most ﬁction of an instructive kind, the prose in The RichestMan in Babylon will not win any awards. However, its little storieshave inspired many readers toward responsible fortunes, includingRobert Kiyosaki (see Rich Dad, Poor Dad). The book’s “cures for a lean purse” include not gambling and own-ing your own home (because it reduces the cost of living and increasesyour enjoyment of life). Most importantly, it teaches you why you mustbecome someone who draws dividends from investments instead ofmerely earning money from labor—letting money be your slave ratherthan vice versa. Even if you are older, it is not too late to make thetransition. If you seek your betterment you will be rewarded. The Richest Man in Babylon belongs to that group of titles withinthe success literature dealing with saving, investing, and ﬁnancial pro-priety, in which setting goals, a strong work ethic, and an optimisticattitude are all important. But how do you reconcile these ideas withthose of the more spiritual prosperity authors such as Catherine Ponderand Wallace Wattles? Both ﬁnancial knowledge and a strong awarenessof abundance are necessary if you are to accrue wealth in a satisfying,sustainable way. Everyone knows that the greedy and miserly, even 72

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50 SUCCESS CLASSICSthose who have great wealth, are not happy. Equally, while “trusting inGod as the source of your supply” may bring you unexpected gains, itpays to increase your knowledge of the earthly world’s ﬁnancial waysand laws. With both faith and knowledge you can create fortunes thatwill last, and the wisdom you have attained on the journey can be usedto help others.George S. ClasonBorn in Louisiana, Missouri in 1874, George Samuel Clason attendedthe University of Nebraska and served in the US Army in theSpanish–American War. He began a long career in publishing, founding the Clason MapCompany of Denver, Colorado, which produced the ﬁrst road atlas ofthe United States and Canada. In 1926 Clason published the ﬁrst of anumber of pamphlets on the secrets of ﬁnancial success. They were laterput together as The Richest Man in Babylon, which has sold over oneand half million copies. 73

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1926The Secret of the Ages “You are one of the Lords of the Earth, with unlimited potentialities.Within you is a power which, properly grasped and directed, can lift you out of the rut of mediocrity and place you among the Elect of theEarth—the lawgivers, the writers, the engineers, the great industrialists—the DOERS and the THINKERS. It rests with you only to learn to use this power which is yours—this Mind which can do all things. ” “You need not be a slave to hard luck or circumstances all your life. There is a way to get the things you want—a way completely in harmony with the highest aspirations of the human race. ” In a nutshell If you have a single powerful purpose, you will have the courage to act on your ideas. In a similar vein Claude M. Bristol The Magic of Believing (p. 42) Russell H. Conwell Acres of Diamonds (p. 86) Napoleon Hill Think and Grow Rich (p. 144) Catherine Ponder The Dynamic Laws of Prosperity (p. 216) Wallace D. Wattles The Science of Getting Rich (p. 282) 74

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CHAPTER 11 Robert CollierI n the ﬁrst decades of the twentieth century many inspirational books were published, most now obscure. The Secret of the Ages has endured thanks to some updating by the author’s family, but alsobecause of its alluring promise to reveal ancient success secrets. Intruth, there are few references to ancient cultures or writings within itspages, but it is still a good introduction to ideas that we associate withthe modern success movement. Written at a time when there was growing public interest in thepowers of the mind, this book’s excitable prose and faith in the reader’spotential made it a bestseller.Unknown lands of the mindCollier guides the reader through a mental landscape of three levels: theconscious, subconscious, and superconscious mind. The conscious part of your mind you think of as being “you,” butrepresents only a small part of the mind. Successful people have a goodrelationship between this and their subconscious, which they direct tocreate things for them and solve their problems. The subconscious partof the brain knows how to do a million things perfectly (including run-ning your body) and will do them if you let it. Savants can play a pieceof music perfectly if they have heard it only once, or perform incrediblefeats of mathematical calculation; such talents do not come from theconscious mind. Carl Jung believed that the subconscious (he called itthe unconscious) contained all the knowledge a person had ever gained,but also the knowledge of every other person who had lived. This partof the mind is morally neutral, however, and very open to suggestion. Ifyou give the subconscious thoughts and images of plenty and success, itwill go to work to make them reality. If you give it negative thoughts, itwill create negative circumstances. Collier suggests that the feeling we sometimes get of being guidedtoward better things or away from bad (expressed in terms such as a“guardian angel” or “kindly genius”) is in fact a function of the 75

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ROBERT COLLIERsuperconscious mind, that part of us in touch with the all-knowing andall-seeing Universal Mind. This unseen hand, or the Higher Self, ratherthan being the realm of nutcases, is quietly attested to in most people’sexperience. If asked for assistance, it will be forthcoming.An aristocracy of thinkers and doersWe worry about the loss of forests or running out of oil, Collier says,but we don’t seem to care as much about the loss of mental power ifwe are not using our mind. People eat, sleep, and work without everrealizing the wealth that lies within them. We have all heard that weonly use 10 percent of our brain power (according to Collier, it was thepsychologist and philosopher William James who ﬁrst said this), buteven if that is wrong, even if it is 20 percent, this still leaves an enginerunning with nowhere to go. To be one of the doers and thinkers, youhave to stretch yourself. Collier quotes Orison Swett Marden, who said, “The majority of fail-ures in life are simply the victims of their mental defeats.” Individuals whoplod along in mediocrity do so because they don’t really believe in them-selves. Therefore, there is always a way open for the “determined soul.”Just as a highly magnetized piece of metal can lift another piece ten timesits size, so a highly magnetized person, charged with conﬁdence and pur-pose, can do at least ten times more than another who is not so energized. Collier notes that once you have achieved, you are more likely toachieve again because you now have it in you to succeed. In a furtheranalogy, he suggests that when you strongly desire something andbelieve that you will have it, it sets in motion a mental whirlpool thatsucks in the things, people, and circumstances necessary to enable itsrealization. You develop a momentum that allows you to continueachieving but with less energy. The greatest discoveries, Collier notes, came from a person whoactually noticed something everyone else had seen. The biggest for-tunes, he says, were made out of opportunities that many had but onlyone person grasped. It is not that unsuccessful people never see oppor-tunities; they do. But they differ from people who are called winners inthat they rarely have the will or the courage to act on a good idea.They give themselves only the reasons why something could not bedone, while the winner only thinks of how it could. 76

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50 SUCCESS CLASSICSSuccess first has to be seenCollier relentlessly gets to the bottom of what concepts like “will,”“desire,” and “ambition” actually mean and how they can be utilized.Basic to his thinking is that success must be “seen” into life throughforming images. Why is visualizing something you desire so important to its attain-ment? Everything made in the real world, Collier says, begins as animage. God imagined the world before it was made, and you too imag-ine your future before it comes into being. The trick is to take idleimage making and render it purposeful and positive. Collier’s “treasuremapping” technique involves creating a collage with images of thethings you want in life. By looking at these images several times a day,you prepare the way for their entry into your life. One woman, at herwits’ end and living in poverty, made pictures of a cottage and gardenfor her and her children to live in, and a shop where she could sellhaberdashery. By a strange sequence of events she had both within sixmonths. There is an occult law that power ﬂows from the higher to the lowerpotential, not the other way around. Therefore, always imagine thebest possible outcome, and the forming of reality will follow thisdesign.Intensity of desire and will“It may seem paradoxical,” Collier says, “but few people do knowwhat they want.” Humans may be a bundle of wishes and wants, butunless we hone these hankerings to a sharp point we will forever driftin a sea of unfulﬁllment. He mentions a Chinese proverb, “Great soulshave wills; feeble ones have only wishes.” You may still recall the childhood instruction to “be content withwhat you’ve got,” but consider that every great thing begins as dis-content, with a desire for something different. The challenge is to reﬁneour longings and discontents into a single powerful purpose. You beginthis process, suggests Collier, by making a list of everything you couldpossibly desire, then weeding out the things that won’t serve you in thelong run. If you’re not sure which desires are best, ask, “Will this tendto make me better, stronger, and more efﬁcient?” When you have arrived at your single encompassing desire, orDeﬁnite Ideal, it is easier to cast off the nonessentials of life in a way 77

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ROBERT COLLIERthat the drifting thinker can never contemplate. Using a nautical anal-ogy, Collier says:“The Deﬁnite Ideal is like the grain of sand which exists at the center ofevery pearl, and about which the pearly material has gathered. It is the‘big idea’ around which your Constructive Imagination builds, deposits and accumulates its wealth of material.”Once you have this sense of purpose, be willing to pay the price.Impose discipline on yourself and never let up on attaining your onetrue desire. Even if you are not brilliant, it does not matter in the longrun, because the law of averages means that if you persist you will reaprewards. Be also aware and grateful of the hidden hand (the guardian angel)that helps you toward achieving your aims. Have faith that you willachieve your aims, just as you have faith that the sun will rise in themorning. Yet this faith is not spiritual, it is rational. Singularity of pur-pose can produce a relaxed knowing, a faith in your future triumphthat all really successful people share. This sense of gratitude andknowing attracts what you want on the principle that “like seeks like”:things ﬂow to the person who already appears to have.Final commentsAlthough it could be classed as a straight prosperity classic, in itsurgency to convince readers of their massive potential The Secret of theAges is essentially a work of motivation. The book is colored with many poems and verses and, perhaps asyou would expect from a master of the sales letter and advertisement,Collier makes liberal use of capitals and exclamation marks. His style isconversational and he does not ﬂinch at repetition to ram home apoint. If you ﬁnd yourself thinking that there is a lack of connective tis-sue in the book, it is because each chapter was originally released on itsown, in the manner of Clason’s The Richest Man in Babylon. At the back is a selection of letters that Collier received over theyears from people relating how The Secret of the Ages changed theirlife. On ﬁrst reading it is hard to see how the book could have hadsuch an impact; to the contemporary success aﬁcionado its ideas andlanguage will seem dated. But its message that you can be the master of 78

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50 SUCCESS CLASSICSyour fate is still an inspiring one, and the book contains truths that, ifput into practice, will bring the success you desire.Robert CollierBorn in St. Louis in 1885, Collier was educated at a church school andtrained to become a priest. Deciding that the life of the cloth was notfor him, he went to West Virginia and for eight years worked as a min-ing engineer. After moving to New York City, he worked in advertising for the PFCollier Publishing Company (his uncle had founded Collier’s Magazine)and became an expert at writing sales copy, generating millions of dol-lars for the ﬁrm. His booklet The Million Dollar Sales Letters is a clas-sic marketing work. Following a serious but undiagnosed illness, which Collier felt hehad cured by mental power, he read voluminously to discover the lawsand secrets of the mind. Wanting to make what he knew more accessi-ble, he wrote and published a series of short books, The Secret of theAges, later put into the one volume. Another series, The Law of theHigher Potential, is now known as Riches within Your Reach. Hisother books include Prayer Works and The Amazing Secrets of theMasters of the Far East. Collier died in 1950. 79

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2001 Good to Great “No matter how dramatic the end result, the good-to-greattransformations never happened in one fell swoop. There was no singledeﬁning action, no grand program, no one killer innovation, no solitary lucky break, no miracle moment. Rather, the process resembled relentlessly pushing a giant heavy ﬂywheel in one direction, turn upon turn, building momentum until a point of breakthrough, and beyond. ” In a nutshellDon’t be satisﬁed with being merely good or excellent. Discover what it takes to be great. In a similar vein Michael Dell Direct from Dell (p. 96) David S. Landes The Wealth and Poverty of Nations (p. 178) J. W. Marriott Jr. The Spirit to Serve (p. 210) Sam Walton Made in America (p. 276)

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CHAPTER 12 Jim CollinsM ost great companies enjoyed years of obscurity before their results compelled the world to look at them. In fact, they seemed just like any other company until a certain “transitionpoint” saw them leave the pack behind. The leaps into greatness did not occur through revolution. Contraryto popular opinion, these ﬁrms did not get in expensive new CEOs toturn things around. (That is the mark of a mediocre company.) Andalthough the remarkable results of great companies sometimes make itappear as if their success happened quickly, the leap only happenedafter years of effort, what Collins calls “pushing against the ﬂywheel.” The US drugstore chain Walgreens is an old company that for fourdecades followed the general market in its performance. Then, in 1975,the company left the average and began its remarkable success. From1975 to 2000 it outperformed the stock market by 15 times. It alsooutperformed the technology star Intel by two times, the much-laudedGeneral Electric by ﬁve times, and the famed Coca-Cola by eight times. What accounts for a sudden and sustained rise out of mediocrity?Jim Collins began a ﬁve-year research effort to ﬁnd out. Of the list of11 great companies he came up with, whose inclusion in Good toGreat: Why Some Companies Make the Leap… And Others Don’t wasbased on superior performance for at least 15 years, Collins says, “adowdier group would be hard to ﬁnd.” It included Fannie Mae (amortgage ﬁnance house), Gillette (razors), Kimberly-Clark (diapers,paper towels), Kroger (discount supermarkets), Nucor (steelmaker),Philip Morris (cigarettes, chocolate, coffee), and Pitney Bowes (back-ofﬁce equipment). For each of these Collins found a comparison com-pany that had remained merely good (e.g., Eckerd for Walgreens). What themes did he draw from the research?A certain kind of leadershipCollins was not really interested in leadership when he began the study.He wanted to get away from the “great leader” complex of many

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JIM COLLINSbusinesses, where it is thought that bringing in a dynamic leader willtransform everything. He did in fact discover that leadership isextremely important, but the type of leader that makes for greatnesswas the surprise. Great-company leaders are an unusual blend of ambi-tion and humility, “more like Lincoln and Socrates than Patton orCaesar.” Collins describes Darwin Smith, head of Kimberly-Clark, ashaving an “awkward shyness and lack of pretense… coupled with aﬁerce, even stoic, resolve toward life.” Such leaders do not seem outwardly ambitious, because theychannel their drive and determination into securing the long-termsuccess of their company. They are reluctant to talk about them-selves, instead pointing to the great people who have made their con-tribution, and forever counting their blessings (despite the evidenceof hard work, Collins was surprised how many mentioned the word“luck” in their personal and corporate successes). These leaders alsoshare a passion for the products their firm creates, howevercommonplace. For instance, people at Gillette, mainly because itexcited them, sank $200 million into developing the Mach 3 razor,which became a great success. Because they put their ﬁrm ﬁrst, these “level 5” leaders, as Collinscalls them, ensure that whoever succeeds them is likely to be just aseffective, if not more. In contrast, executives of the comparison compa-nies wanted their personal record to stand out, the more so if theypicked weaker successors. Level 5 leaders intentionally keep a low pro-ﬁle, “ordinary people quietly producing extraordinary results.” Makingfortunes through selling their shares to takeover artists or leverage buy-outs, it is hardly worth saying, is unthinkable. They are in it for thefuture greatness of the company, even well beyond their tenure. Manykept ofﬁces in the building long after retirement.The right peopleConventional wisdom has it that if you want to start and build a greatcompany, you develop the concept to perfection and then hire the bestpeople you can ﬁnd. Collins and his team, though, found that when theexecutives of good-to-great ﬁrms began their corporate transforma-tions, they worked seemingly in reverse: “They ﬁrst got the right peopleon the bus (and the wrong people off the bus) and then ﬁgured outwhere to drive it.” 82

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50 SUCCESS CLASSICS The beneﬁts of this approach? If you have the right people from thebeginning, they will be able to adapt to any changes in direction orstrategy. You will not have to motivate them because they share thedesire to achieve greatness, and therefore are already motivated. Inter-estingly, the great companies pay no more than the merely good; remu-neration is not a big factor in motivating people when they havesomething larger than money to aim for. Finally, great companies have cultures that are “rigorous but notruthless.” Rigor means that everyone knows the standards they and theﬁrm must live up to. If they are not met, they know they must go.Ruthlessness, on the other hand, is a characteristic of merely good com-panies. With little thought, they will hack off whole divisions throughrestructuring and sack thousands of workers through top-down deci-sions. Such a climate of fear is inherently unproductive and demotivat-ing, whereas great companies have an esprit de corps that challengeseveryone to be at their best. They know, as Collins puts it, that “Greatvision without great people is irrelevant.”Brutal honestyGreat companies are set apart by their reliance on the facts in makingtheir decisions. They do not rely on management fads or heroic dreamsof greatness to achieve their goals, instead engaging in continual self-assessment. Collins found that charismatic leaders can often get in the way of acompany’s success, because the staff start to refer only to “what theCEO will think” instead of data being the basis for decisions. The bestcompanies want the truth to be heard, whoever speaks it. They have aculture of questioning and openness uncorrupted by obsequiousness. Collins quotes Winston Churchill: “I… had no need for cheeringdreams. Facts are better than dreams.” Churchill was also famous forhis attitude of “never surrender.” Great companies also have this com-bination of believing that they will prevail in the end, while being will-ing to face up to the difﬁcult reality.A reason for beingGreat companies have a single idea or focus that guides everything theydo. Such concepts may take many years to reﬁne, but once in place can 83

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JIM COLLINSgenerate enormous success because they are so differentiated.Walgreens has as its self-deﬁning concept the best, most convenientlylocated drugstores, with high proﬁt per customer visit. Wells Fargodidn’t try to beat Citicorp or Bank of America to be the biggest globalAmerican bank. Instead, it focused on being a very proﬁtable bankwith a focus on the western United States. Collins has a three-circle model to test for greatness. The ﬁrst circleis awareness of what you can be the best in the world at. This involvesa realistic appreciation of your abilities; it is not about letting your egorun wild. Neither will it involve simply what you are competent at;what you have been doing for years may not be what you can be greatat. The second circle is what drives your economic engine; that is,where exactly your proﬁt comes from in the most abundance. The thirdcircle is passion: very simply, doing only what you are deeply passion-ate about. If you can ﬁnd something that you really can be best in theworld at, that you love doing, and that makes you money, you have thebeginnings of a great enterprise. If you have any two out of three, youare likely to be merely successful, not great. The book is worth getting for the chapter describing the modelalone, as you can apply it to your life as much to the organizationwhere you work. What is it exactly that you stand for? Can you sum itup in a few words? If not, your current efforts are likely to be scatteredand lacking energy, just like the “merely good” companies.Using technology wiselyTechnology is never the basis for becoming great, Collins says, manage-ment is. Technology was rarely mentioned as a major factor for success byexecutives in the great companies. It was never a case of “This technol-ogy will make the company,” more like “We could use this to take usfurther with what we are doing.” Without an opportunity-spotting cul-ture in place, other companies chose technology for technology’s sake,but the exceptional companies only invested in cutting-edge ways ofdoing things when it matched up with their larger vision. Collins’s assessment is that “technology by itself is never a primarycause of either greatness or decline.” The wise use of technology, how-ever, is part of great-company culture. 84

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50 SUCCESS CLASSICSFinal commentsGood to Great was researched at the height of the “new-economy”mania. Collins says of these years: “We entered a remarkable momentin history when the whole idea of trying to build a great companyseemed quaint and outdated.” Having a “culture of discipline,” one ofthe key characteristics of great companies that he identiﬁes, did indeedseem old-fashioned. It turned out that these ﬁrms had not become greatthrough being in the right industry at the right time, but had identiﬁedtheir unique strengths and worked relentlessly to capitalize on them. This conclusion is remarkably similar to that reached by DavidLandes in The Wealth and Poverty of Nations, who found that whilegeography and natural resources (chance) certainly affected thedevelopment of countries, what made them prosperous was their cul-ture of effort and enterprise. Before Good to Great, Collins wrote the celebrated Built to Last,about visionary, iconic companies that have stood the test of time. Asthe recipe book for hoisting yourself to an initial stage of greatness,Good to Great is actually the “prequel,” Collins says. The value ofBuilt to Last is that it can show you how to how to stay great. Collins says that he doesn’t think of his work as necessarily aboutcompanies or business. The principles of Good to Great can apply toany sort of organization, and he explicitly says that you can apply themto your life. You may be surprised how inspirational these books are;the excitement is in the knowledge that success can be measured and itslessons applied methodically. With both books you will have a well-researched foundation for success that puts results before charisma.Jim CollinsCollins now heads a “management laboratory” in Boulder, Colorado,which studies enduring great companies. He is on the faculty of theStanford University Graduate School of Business, and previously heldpositions with McKinsey and Hewlett-Packard. His other books include Beyond Entrepreneurship. Built to Last:Successful Habits of Visionary Companies has sold over a millioncopies. 85

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1921 Acres of Diamonds“Al Hafed heard all about diamonds that night, and went to bed a poorman. He wanted a whole mine of diamonds. Early next day, he eagerlybesought the priest and asked him where diamonds could be found. ” “Greatness consists in doing great deeds with little means—in the accomplishment of vast purposes. It consists in the private ranks of life—in helping one’s fellows, beneﬁting one’s neighborhood, in blessing one’s own city and state. ” In a nutshell Whatever you desire is probably close at hand, if you are willing to open your eyes and your mind. In a similar vein Horatio Alger Ragged Dick (p. 12) Napoleon Hill Think and Grow Rich (p. 144) Wallace D. Wattles The Science of Getting Rich (p. 282) 86

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CHAPTER 13 Russell H. ConwellR ussell Conwell once went on a trip along the Tigris river, in present-day Iraq, using a guide hired in Baghdad who was to take him out to the Persian Gulf. These river guides were like barbersin that they liked to talk, but the story this one told, Conwell insists, iseasily veriﬁed. There was a man, Al Hafed, who lived on the banks of the RiverIndus who had a nice farm with orchards and gardens, excess cash, abeautiful wife and children. He was “wealthy because he was con-tented.” Then an old priest visited him and one night related how theworld was made, including the formation of all the rocks, the earth, theprecious metals and stones. He told the farmer that if he had a few dia-monds he could have not merely one farm, but many. The farmer lis-tened. Suddenly, he wasn’t that happy with what he had thus faracquired in life. He sold up and went traveling in search of diamonds, across Persia,Palestine, and into Europe. A couple of years later, what money he hadwas gone and he was wandering around in rags. When a large wavecame in from the sea, he was happily swept under by it. The man who had bought the farmer’s land was another story. Oneday, watering his animals in the stream that ran through the property,he noticed a glint in the watery sands. It was a diamond. In fact, it wasone of the richest diamond ﬁnds in history: the mines of Golcondawould yield not just one or two but acres of diamonds.Open your mindIn this tiny book, which is actually a transcript of a hugely popular lec-ture that he gave, Conwell relates similar true-life stories about thefolly of going off to ﬁnd your fortune when it is in your own backyardor staring you in the face. He suggests that most people are “pygmiesof their possible selves,” because they are not willing to accept, or itdid not occur to them, that they have great untouched powers: “Fami-lies do not credit their own folks with abilities they attribute to other 87

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RUSSELL H. CONWELLpersons. Towns and cities are cursed because their own people talkthem down.” Conwell’s message is that we shouldn’t fall into the trap of thinkingthat all the great people and businesses are somewhere else. Consider thatHenry Ford started designing and building his car on his own farm andbuilt the famous Ford factories in the area where he had grown up. Therewas nothing special about Dearborn, Michigan—he made it special, with-out ever leaving his own backyard. Great investor Warren Buffett decidedagainst moving his family to Wall Street. He stayed in Omaha, Nebraskaand made his billions there.The discovery of true serviceConwell’s other theme is that great service is basic to prosperity. He tells of the ﬁnancier John Jacob Astor the elder, who suddenlyhad to go into partnership in a millinery store because the ownerscould not keep up their mortgage payments. What did he do to get thisbusiness on its feet? He would go into the park and quietly watch thewomen strolling along, particularly the most conﬁdent and elegant, andtake careful note of the hats they were sporting. Back in the store, hehad these hats copied exactly. The result was that the store never madea hat or bonnet that a lady didn’t like, and it boomed. Left behind wasthe idea that “We make hats and try to sell them,” to be replaced by“What women want, we sell.” From such basic service erupts great success, in this case a store thateven in the nineteenth century made $17 million. You may think youhave already considered it, but ask again: What do people want? The problem with most people, Conwell says, is that their wealth is“too near.” You need to develop an open mind to spot the obvious.This will never happen if you are continually speeding off to the nextopportunity, looking for a greener pasture. Genuine service is simple,but it may only occur to you what this is when your mind has beenquieted. Without ﬁnding some quiet time to yourself you will not beable to see the wood for the trees. Leave time for meditation and con-templation, and answers will come. Another way to start is by thinking about what you need. Chancesare that if you need something, others will too. The woman whoinvented the snap button, ﬁrst used in gloves, made her fortune thisway. Conwell emphasizes: “It is the open-mindedness to little things 88

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50 SUCCESS CLASSICSthat brings human success.” The greatest minds think in simple terms,and the greatest people, Conwell says, are always straightforward. You can’t succeed if you have no interest in people and their needs.In Conwell’s words, you must make yourself necessary to the world.What all great people have in common is that they make themselves a“medium” for good: they make the best products and provide them tothe largest number. This, not taking money at a till, is service.Final commentsAcres of Diamonds might seem to be from another era, but Conwellwas one of the original American motivational speakers and his talk canstill inspire. It costs next to nothing to buy, can be read in about half anhour, and every so often you may like to be reminded of its two lessons,which are so simple but so useful to remember:❖ There’s no need to look beyond yourself and your immediate circumstances to ﬁnd the seeds of your fortune.❖ Service is the key to success. Don’t just sell things, ﬁnd out what people really want. This requires greater than normal thought and observation.Russell H. ConwellRussell Herman Conwell was born in Worthington, Massachusetts in1843. He attended Yale College and in 1862, not yet 20, he raised acompany of volunteer soldiers and fought on the Yankee side in theCivil War as a commissioned captain. After the war Conwell studied at Albany Law School and practicedlaw, but later went to work as a reporter for the Boston EveningTraveller. He traveled around the world for another journal, theAmerican Traveller, and was 27 when he journeyed down the Tigrisriver. His wife died when he was still in his twenties. In his third career, in 1882 Conwell was invited to become pastor ofa newly built Baptist church in Philadelphia. He would serve in thisrole for 43 years, also becoming a popular lecturer on the Lyceum andother circuits and writing a number of books. Easily his most popularlecture was “Acres of Diamonds,” which he gave over 5,000 times andearned him, it is said, a million dollars. With the money he foundedTemple University in Philadelphia. He died in 1925. 89

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1989The 7 Habits of Highly Effective People “ It’s incredibly easy to get caught up in an activity trap, in the busy-ness of life, to work harder and harder at climbing the ladder of success only to discover it’s leaning against the wrong wall. It is possible to be busy—very busy—without being very effective. ”“In the last analysis, what we are communicates far more eloquently than anything we say or do. We all know it. There are people we trustabsolutely because we know their character. Whether they’re eloquent or not, whether they have the human relations techniques or not, we trust them, and we work successfully with them. ” In a nutshell The ﬁrst step on the road to success is good character. The second is openness to new perspectives. The third is ensuring that daily action is shaped by higher aims, with the knowledge that you always reap what you sow. In a similar vein Warren Bennis On Becoming a Leader (p. 18) Muriel James & Dorothy Jongeward Born to Win (p. 162) Jim Loehr & Tony Schwartz The Power of Full Engagement (p. 192) J. W. Marriott Jr. The Spirit to Serve (p. 210) John Whitmore Coaching for Performance (p. 294) 90

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CHAPTER 14 Stephen R. CoveyI mportant both as a self-help and a success work, The 7 Habits of Highly Effective People is the only book included in both 50 Self-Help Classics and this volume. 50 Self-Help Classics outlined the sevenhabits and the impact of the book, while this commentary goes beyondthe habits themselves to explore Covey’s idea of a successful person. The 7 Habits of Highly Effective People is a masterful synthesis ofhigher-quality ideas in the success literature, placed on a methodologi-cal framework. It is self-help because it is the book you want to readwhen you feel like you are merely skating on the surface of life and arenot being driven by values, and a work about success because itreminds you that real success is built on integrity and timeless princi-ples. With this foundation, the sky is the limit to create and achieve,and to do so in good conscience.Covey’s successful personWe seek direction from people who we perceive have integrity. In itsconcern with integrating principles and action, The 7 Habits of HighlyEffective People is therefore more of a leadership work than a motiva-tional book. Integrity means having a changeless core inside. This allows for anability to cope with large amounts of change where others may bethrown off course. A person of character or integrity stays true to theirvalues, desiring to be a better listener, to love unconditionally, and toseek to understand—in short, to be a successful person before anythingelse. Western society makes us want to have much; it is less concernedwith our state of being, whether we are the person we believe weshould be. Covey’s message is that before we can begin to do, we mustappreciate and reﬁne who we are. His idea of a successful person issomeone who: 91

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STEPHEN R. COVEY❖ Makes and keeps commitments, and honors promises.❖ Admits mistakes quickly and openly.❖ Appreciates the gap between stimulus and response. That is, you rarely have to do anything. If you do something, it is out of choice.❖ Understands that time is precious, and that success is simply being yourself but in an organized way.❖ Is willing to do things that others cannot be bothered to do in order to achieve a higher aim.It was a revelation for Covey when he discovered a statement made bythe former Secretary-General of the United Nations, DagHammarskjöld, “that it is more noble to give yourself to one personcompletely than to labor diligently for the salvation of the masses.”This resonated with him because in his work as a business consultanthe had frequently come across organizations that had been renderedineffective by the differing views of those at the top. Covey had experienced this himself in trying to work with someonewho had a totally different administrative style, and their differenceswere affecting the organization. Choking back fear, Covey decided tosuggest a meeting and resolve the differences. As it turned out, the otherman wanted to do this as much as he did. They solved the fundamentalproblem that the organization was facing, instead of continuing to workbusily away on separate projects. Covey’s point is that we grow intosuccessful, independent people by having the courage to address rootproblems instead of chasing after things that are “out there”:“Creating the unity necessary to run an effective business or a family or a marriage requires great personal strength and courage. No amount oftechnical administrative skill in laboring for the masses can make up forlack of nobility of personal character in developing relationships. It is ata very essential, one-on-one level, that we live the primary laws of love and life.”This point that success can best be developed through courage in dailypersonal interactions is one that is also made throughout Muriel Jamesand Dorothy Jongeward’s Born to Win. These small acts can be themaking of a person, more than ﬂashy public victories. Through showing the way to reﬂect objectively on your own atti-tudes, Covey helps to prevent you imposing your way of seeing the 92

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50 SUCCESS CLASSICSworld on others. Until you can understand others’ ways of seeing,through really listening to them, you cannot be truly successful.Seeing afreshCovey explains that personal growth is often the result not of doingsomething new, but of seeing the same things in a new light. We allhave mental maps of our world that we mistake for the actual territory.By clinging on to old maps we fail to see the true lie of the land and getlost. At this point, to regain our way we are likely to adopt externaltechniques or ﬁxes, but without internal change this will not get us veryfar. We need to change our paradigms, the basic ways we have of see-ing the world. Scientiﬁc paradigms, such as the Ptolemaic understand-ing that the universe revolved around the Earth, are replaced by newparadigms based on contradictory evidence. New paradigms change everything. For example, you may havealways believed that the best way to exist is to “go with the ﬂow” andreact as well as you can to external events; your “map” does notinclude the possibility of proactively shaping your experience throughliving according to goals. But if you decided to change your paradigm,the same territory you walk over every day would suddenly become anew landscape because, from a different perspective, you would be see-ing it for the ﬁrst time. Covey quotes Albert Einstein: “The signiﬁcant problems we facecannot be solved at the same level of thinking we were at when wecreated them.” While smaller changes in our lives can be effectedthrough alterations in attitude and behavior, the larger issues can onlybe addressed by a transformation of the self. To think in a totally dif-ferent way we must become a different person, which does not happeneasily. This is why Covey’s basic unit of change is the habit, becausewhat we do or think about all the time makes us who we are andbecomes the lens through which we see things. Another way of seeing paradigms is the concept of “life scripts,” ablueprint for behavior that helps us to interpret the world and governswhat we do in it. Most people accept life scripts from the environment(family, society) into which they have grown, but Covey reminds us thatthere is always the opportunity to write a new script—a space for makingdecisions based on truth. We all have this window of free will, but thegenuinely successful seek to open it further. Anwar Sadat, the Egyptian 93

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STEPHEN R. COVEYleader who initiated the ﬁrst Middle East peace accords, observed that aperson who could not change “the very fabric of his thought” would notbe capable of changing reality; only those continually willing to seethings from new perspectives can have regular access to the truth.Twice-creating successWhen you build a house, Covey notes, you must have blueprints andplans before the earth is broken. The carpenter’s rule is “Measuretwice, cut once.” In business, you cannot drift along and hope to makemoney. Each product or service must be clearly thought out, withdetailed plans for marketing, stafﬁng, and resource allocation. This isthe stage of “ﬁrst creation.” Most business failures result from under-capitalization, lack of research into the market, or having no businessplan—all deﬁciencies in ﬁrst creation. The same is true for your life. “Overnight” success is usually theresult of years of planning, practice, learning, and visualization of thedesired result. You may have good fortune through other routes, but itis not likely to be enduring. No one ever drifts into meaningful success. Singer John Lennon famously said, “Life is what happens to youwhile you are making other plans.” Surely it is unwise to think aboutshaping your own life to the extent that Covey suggests? His argumentis not that you can prevent life’s inevitable surprises, simply that pur-pose shapes destiny. The paradox is that having some idea of whereyou want to end up (Covey gets you to imagine what people will sayabout you when you die; a surprisingly valuable exercise) actuallyallows more spontaneity in your life because you are more relaxedabout where you are heading. There is less existential angst. You caneither be shaped by the thoughts and intentions of other people, andcall this “life,” or you can adopt the law of twice creation to ensurethat what manifests as life has been brought into being by you.Final commentsThe 7 Habits of Highly Effective People, more than most works in thesuccess ﬁeld, is a book of ideas. It heralded a new era for the genre inits shift back to the notion of building an unchanging core of personalprinciples, where before the emphasis had been more on manipulationof behavior to achieve certain ends. 94

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50 SUCCESS CLASSICS Though this aspect is little discussed, it is undeniable that The 7Habits of Highly Effective People foreshadowed many of the elementsthat make up the discipline of personal coaching, including the pursuitof “win/win situations”; empathic listening in order to have peoplesolve their own problems; self-care and renewal to sustain productivity;goals to guide performance; and maintaining a work/life balance. Whilehe never uses the term “coaching,” the book includes many examplesand anecdotes from Covey’s experience as a father, and his realizationthat “borrowing strength builds weakness”; that is, using your positionas a parent or manager is a weak way of getting things done. Youimprove the world around you not by forcing solutions on it but bydrawing out better outcomes from those involved. It is ironic that The 7 Habits of Highly Effective People, though oneof the most challenging success books to apply and implement, has alsobeen the genre’s bestseller in modern times. The book is a hit even inChina, where amid the rapacious growth of a newly capitalistic econ-omy people still have a hunger for success based on integrity. If there isonly one message that you take from it, be it that you always reapwhat you sow, whether as a person, a business, or a nation. There areno shortcuts to fulﬁllment or lasting achievement.Stephen R. CoveyBorn in 1932, Covey has a Harvard MBA and spent most of his careerat Utah’s Brigham Young University, where he was a professor of orga-nizational behavior and business management. In 1984 he founded the Covey Leadership Center, which 13 yearslater merged with the Franklin Quest company to form Franklin Covey,a $500 million company that sells learning and performance tools inthe areas of leadership and productivity (see FranklinCovey.com). Covey’s other books include Principle-Centered Leadership, FirstThings First, The 7 Habits of Highly Effective Families, and Living the7 Habits. Covey has several honorary doctorates, and was voted one of Timemagazine’s 25 most inﬂuential Americans. He lives in Utah. 95

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1999 Direct from Dell “Here was a device that so profoundly changed the way people worked—and its cost was coming down. I knew that if you took thistool, previously in the hands of a select few, and made it available to every big business, small business, individual, and student, it could become the most important device of this century. ” “Believe in what you are doing. If you’ve got an idea that’s reallypowerful, you’ve just got to ignore the people who tell you it won’t work, and hire people who embrace your vision. ” In a nutshellThe simplest, most uncomplicated way is often the most successful. In a similar vein Jim Collins Good to Great (p. 80) Henry Ford My Life and Work (p. 102) Sam Walton Made in America (p. 276) Jack Welch Jack (p. 288) 96

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CHAPTER 15 Michael DellM ichael Dell’s ﬁrst business venture, at 12 years old, arose from his hobby of philately. He had bought stamps at auction and realized that stamp sellers made good money, so got togethera catalog of his and his friends’ stamps and sold them via mail order.He made $2,000. This effort at cutting out the middleman and sellingdirect was a taste of things to come. Born in 1965 in Houston, Texas, Dell came of age at the dawn ofpersonal computers, and they quickly became his real love. He hungaround computer stores and eventually got his parents to give him a PCfor his ﬁfteenth birthday. They were infuriated when he immediatelytook it to pieces in order to ﬁnd out how it worked. Then, by good for-tune, the 1982 National Computer Conference (now Comdex) hap-pened to be held in Houston and Dell skipped school every day toattend. This was the industry side of computing and it opened Dell’seyes. He discovered the huge markups sustaining computer sales, bywhich IBM could buy the components for a PC for $600–700 and thensell it on to retailers, who would charge the public $3,000.Germination of a businessWhat Dell also realized was that anyone could buy these componentsand make their own machine. Furthermore, the person who sold you acomputer in a store generally didn’t know much about the technology.Retailers were making $1,000 a computer but offering no real cus-tomer support. Demand for computers was enormous and peopledidn’t ask questions, they just bought. Even at this age, Dell believedthat he could make better machines and sell them at a lower price—buthis parents wanted him to go to college and become a doctor. In his freshman year at the University of Texas, Dell was takingclasses while on the side doing computer upgrades for businesspeopleand professionals. With his grades looking shaky, his parents paid hima surprise visit. He managed to stow away all the computer parts in hisdorm room, but was ﬁrmly told that he had to give up the computer 97

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MICHAEL DELLbusiness and concentrate on his studies. His Dad said: “Get your prior-ities straight. What do you want to do with your life?” To his father’sdistinct lack of amusement, he replied: “I want to compete with IBM!”The Dell differenceSo begins Michael Dell’s account of the early years of his company, oneof the great success stories of our times. Dell readily admits that it is nei-ther a memoir nor a history of his company: the purpose of the book isto help in “honing your competitive edge, no matter what industryyou’re in or what your role is.” His story is one of a very small playerchanging an industry. As a piece of writing Direct from Dell: Strategiesthat Revolutionized an Industry is not brilliant, but its value is in show-ing us how thinking differently, and then having the courage of our con-victions, is an essential law of success. To return to the story… At the beginning of 1984, Dell formally registered a company.Through a small ad in the local newspaper he started to sell over$50,000 a month of upgrades, upgrade kits, and components, andwithout telling his parents moved from his dorm into a two-bedroomapartment. He leased 1,000 sq. ft. of ofﬁce space and started employingpeople. As the business took hold, Dell knew that there was no time forhim to spare at college, and he left. Was he scared? “Yes,” he admits, but the risk was balanced by the factthat students were allowed to take a semester off with no penalty, so thedoor was left open for him to return. He needn’t have worried. In the nextyear or two his company had to move three times to bigger premises, andas well as upgrades Dell started selling its own PC based on the 286 chip. Although hard to believe now, Dell’s idea of selling equipment directthrough the mail or over the phone was something new; just abouteveryone bought their computer from a retailer or distributor. By cut-ting out the middleman and dealing with the public and businessesdirect, he could save them a lot of money. What’s more, through directcommunication he could ﬁnd out exactly what each customer wanted,not just for their current machine but for anything in the future. Thisestablished a crucial element of Dell’s success: getting the customerinvolved in the developmental phase. In early computer sales, speed and performance were everything.IBM had 70 percent of the market with a 6MHz 286 PC, so Delldesigned and sold a 12MHz machine at half the price. At the next 98

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50 SUCCESS CLASSICSComdex show there were lines of people to see the machines andMichael Dell made it onto the cover of PC Week. He says that helearned the lessons of “time to market” and the speed at which thecomputer industry moves. This unbeatable combination of performanceand price saw business boom. In 1986 Dell did $60 million in sales,less than three years after the ﬁrm ofﬁcially began. In 1988 it became apublic company.Michael Dell’s lessons for successThink unconventionallyPlenty of people told Dell that his direct approach to selling computerswould never work on a large scale. “It’s fun to do things that peopledon’t think are possible or likely,” he says. Consequently, questioningconventional wisdom became a basic element of the culture of the ﬁrm.Despise the status quoDell staff are told to think like entrepreneurs or as if they are owners ofDell. They are much more likely to take risks. He tells staff: “There’sno risk in preserving the status quo, but there’s no proﬁt, either.”Set big goals that may just be do-ableAt the end of 1986 the company set a goal to achieve $1 billion in salesby 1992 and to expand internationally. By 1992 it was doing twice this.Setting a large goal makes you think about how you will achieve it.Love change“Being on the cover of Fortune doesn’t guarantee you anything,” Dellsays. In the computer industry no one can rest on their laurels; youneed a climate of perpetual change and to be a voracious learner toforesee what is happening and provide for it. Dell even surfs the web after his kids have gone to sleep to see whatpeople in chat rooms are saying about the company.Focus on your possibilities, not your competitorsA simple tip, easily forgotten in the stress of the business arena, but onethat assists in reaching creative solutions. Don’t act from fear; measureyourself not by others but by an absolute standard of excellence. 99

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MICHAEL DELLRunning DellDell jokes that no one taught him at school how to run a billion-dollarcompany. Its enormous growth itself became a problem, because itblinded him to the more important measures of proﬁtability and cashﬂow; that is, value as opposed to pure growth alone. The solution, asobvious as it seems now, was to put a new emphasis on facts and data.Out of this came a laser-sharp focus on doing fewer things better. Instead of trying to put out a range of laptops, for instance, the ﬁrmput everything into the Dell Latitude. It was the ﬁrst notebook to havea lithium ion battery that would last as long as a ﬂight from LosAngeles to New York. It was a big success. Of this challenging periodDell says: “We began to realize that it’s as important to ﬁgure out whatyou’re not going to do as it is to know what you are going to do.” Dell embraced selling on the internet before almost anyone else. Thecompany’s expertise was in direct selling, therefore the direct (no inter-mediary) nature of selling on the internet was the perfect medium forits growth. In June 1996 it started selling computers online and byDecember 1996 was doing $1 million a day, when Amazon.com wasonly turning over $15 million a quarter and losing money. Thus thebusiness model that had already been put in place received a massiveboost from a medium that perfectly suited it. In addition, Dell’s suppliers started to provide the company withcomponents only hours before they would be needed. This was a cru-cial advantage in an industry where, because of the speed of new tech-nological improvements, being stuck with old components could bedisastrous. Dell also became well known for its home servicing, at a time when ifsomething went wrong with your computer you had to lug it to a store.Because it had no shop front, in a way Dell had to provide this. Being adirect selling company meant that it had to work extra hard to convincethe public and businesses of its credibility. It has to “underpromise andoverdeliver,” as Dell puts it, never doing things merely for technology’ssake and making sure that what it offers customers is what they want.Final commentsWritten at the height of high-tech mania during the internet’s honey-moon, Direct from Dell is a classic because it is both a record of thisamazing period and a success manual. Some will say that Dell was just 100

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50 SUCCESS CLASSICSlucky to be sitting on the tip of a rocket that took off, but he has livedthrough the hype and continues to produce remarkable results. Thecompany currently has revenues of $39 billion, with 40,000 employees.At the time of writing it is the market leader in PCs with 17.3 percentof the market, compared to the much older Hewlett-Packard’s 15.8 per-cent. Truly a David and Goliath story. In his drive to provide people with an ever-improving product atever-decreasing prices, Dell is a modern-day Henry Ford. Like Ford didwith cars, his aim has been to take the mystery out of buying and oper-ating a computer. Dell’s overriding success lesson is that the simpleryou can make life for people, the more valuable you will be to them. While it sags in the middle and is somewhat repetitive, Direct fromDell is an inspiring book if you are thinking about forming a company.Part I is more interesting because it is more personal and follows theexcitement of the ﬁrm’s rise from dorm room to the Fortune 500. Yetunlike some success manuals, there is little element of the heroic. It isunderstated and, although he is clearly a passionate businessman, Dell’shumanity can be read between the lines. 101

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1922 My Life and Work“From the beginning I could never work up much interest in the labor of farming. I wanted to have something to do with machinery. My father was not entirely in sympathy with my bent toward mechanics.He thought I ought to be a farmer. When I left school at seventeen and became an apprentice in the machine shop of the Drydock Engine Works I was all but given up for lost.”“Good will is one of the few really important assets of life. A determinedman can win almost anything that he goes after, but unless, in his getting, he gains good will he has not proﬁted much. ” In a nutshell Continually reﬁne your thinking power. Imagine something the world would really need. Make it cheaply as possible and sell it at the lowest price. In a similar vein Andrew Carnegie The Autobiography of Andrew Carnegie (p. 56) Michael Dell Direct from Dell (p. 96) Sam Walton Made in America (p. 276) 102

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CHAPTER 16 Henry FordM y Life and Work takes us inside the mind of a person who managed to change the world, yet who lived in relative obscurity for the ﬁrst 40 years of his life. This was a longtime to develop skills, both personal and mechanical, that laid thefoundation for a massive enterprise. Ford was that rare person, an inventor who went on to mass-produce his own invention. If you ever feel disheartened because youhave an idea for a product or service for which you have been toldthere is no market, remember Ford’s comment that “there never is fornew articles.” He saw fear as the result of dependence on other peopleand circumstances, and in every area of his life, from the avoidance ofdebt to the work ethic that he held sacred, Ford was an expression ofwhat Emerson called “self-reliance.”The visionDescribed by his mother as a born mechanic, the greatest moment inFord’s childhood was seeing a road engine, a steam vehicle used to haulfarm machinery. It was the ﬁrst vehicle he had seen not pulled by horses. Always tinkering, by age 15 he could ﬁx almost any watch and seri-ously considered becoming a watch manufacturer. But the idea of the“horseless carriage” was too great and, without the support of hisfather, Ford began to build one in the workshop he had constructed onthe family farm. At 17 he began work as an apprentice machinist, qualifying beforetime, and rose through the ranks. In his spare time he worked on agasoline engine and dreamed of building a “universal car” that couldtransport people cheaply and reliably. In his twenties he was inspired by a brief meeting with the inventorThomas Edison; despite virtually everyone at the time saying that elec-tricity was the future, Edison told him to stick at his engine. Ford’s employer offered him a major promotion on condition thathe gave up his private obsession. His reaction? “I had to choose 103

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HENRY FORDbetween my job and my automobile. I chose the automobile, or rather Igave up the job—there was really nothing in the way of choice. Foralready I knew that the car was bound to be a success. I quit my job onAugust 15, 1899, and went into the automobile business.”…and the realityWithout personal funds, Ford joined up with a group of investors toform the Detroit Automobile Company. He quickly found that theywere more interested in quick proﬁts than engineering a better machineand, after only a year and 20 cars, he resigned. Four years later, the 40-year-old began the Ford Motor Company. Itwas capitalized at $100,000, and this time Ford owned a quarter of thestock. Over 1,700 cars were built in the ﬁrst year of operation, and theModel A gained a reputation for reliability. The second year, giving into pressure from business associates, Ford brought out three modelsand raised prices. The company sold fewer vehicles. He realized that hehad to have ownership in order to have full control and, using incomegenerated from sales, brought his holdings up over 50 percent, laterincreased to 100 percent. In 1908–9 the ﬁrm sold over 10,000 cars, and again there was pres-sure to expand the range. Ford went in exactly the opposite direction.One morning in 1909 he announced that the company would now sellonly one model: the Model T. What’s more, it would be available inonly one color. “Any customer can have a car painted any color that hewants so long as it is black,” were his now famous words.SuccessWhile many believed that the car’s low price would bring the ﬁrm’s col-lapse, Ford himself expected the market to expand dramatically. It did.He started building the largest factory in the world, Highland Park,and production capacity leaped from 6,000 to 35,000 cars, while thenumber of staff merely doubled. By the early 1920s the company employed 50,000 people and wasturning out 4,000 cars a day. In 1921 alone, 5 million cars were pro-duced. By the end of the decade, 15 million Model Ts would be run offthe assembly line. This was the miracle of mass production. 104

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50 SUCCESS CLASSICSUniversal demandThe ﬁrst automobiles were considered a “rich man’s toy,” sold on thebasis of pleasure and status. Fords were advertised for their utility.Many people could justify the cost if it was used for travel to work or tocarry the family around. The cars were also sold on the basis of simplic-ity of use, which gave rise to the saying: “Anyone can drive a Ford.” It was price, though, that really made the Model T universal. In1909–10 it had cost $950. Ten years later, it was selling for $355. Howwas this possible? Ford abhorred the idea of trying to get the highestprice for the car. Instead, his strategy was to base prices on the cost ofmanufacture. If his factories could be made more and more efﬁcient,the consumer would win. Like Sam Walton with his Wal-Mart stores,Ford discovered that he could make more proﬁts from selling greaternumbers of the product at a lower price, than selling fewer at a higherprice. If you manage to sell a high-quality product cheaply via low-costmethods, “you will be meeting a demand which is so large that it maybe called universal,” Ford wrote.Work and wagesAs America’s assembly lines grew in number, the prevailing wisdombecame that repetitive work numbed the body and spirit. Earning away-above-average $6 a day, Ford workers were less concerned.Henry Ford believed that high wages increased the stability of thework force and helped the men to concentrate, knowing that theirfamilies were taken care of. It also allowed them to be consumers, notjust for Ford cars but for other goods and services that kept the econ-omy buoyant. Ford’s hiring methods were unusual. The ﬁrm wanted to know littlemore about prospective workers than their name, age, marital status,and whether they were willing to work. Not speaking English andhaving a criminal record were not a problem. It did not hire “experts”because they usually only knew what could not be done; Ford pre-ferred “fools who would rush in” to tackle problems with an openmind. Blind people, deaf and dumb people, those with only one leg orarm—all were employed by Ford at the same wage as the able-bodied.He wrote: 105

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HENRY FORD“I think that if an industrial institution is to ﬁll its whole role, it ought tobe possible for a cross-section of its employees to show about the same proportions as a cross-section of a society in general. We always have with us the maimed and the halt.”Such an enlightened philosophy is taken for granted now, but it wasn’tin the 1920s.The ideal of serviceIn the early days of the car industry, Ford points out, there was noafter-sales service. Car makers were totally focused on selling ratherthan building a relationship with customers, and it was consideredgood business to charge a lot for spare parts because the owner had nochoice but to buy them. Ford believed that the sale of a car was merely the beginning of arelationship with a buyer. He built his cars to last, but also made surethat parts were transferable across models, cheap, and easy to install.This ideal of service might have seemed crazy to other manufacturers,but the trust it built up among the public was priceless. His early experience with investors demonstrated that the principleof “return on the dollar” often sabotaged the creation of an enterprisethat would grow into something substantial. Businesses were not cashcows; they should offer something that made lives better, and if theyachieved this, good returns would naturally ﬂow.Final commentsA major ﬁgure of the twentieth century, Ford combined two traits oftenseen in the super-successful person: an original, far-reaching vision thatcarries with it the potential to change the world; and an obsessiveattention to detail that can drive people mad. Ford’s dark side included spying on managers and belief in conspir-acy theories about Jewish bankers taking over America. He has alsobeen ridiculed for the famous saying that “history is bunk.” This washis shorthand for the belief that education should not be aboutremembering facts, but about teaching people how to think better.Despite how well he paid, Ford could not help noticing that most peo-ple chose jobs that enabled them not to have to think, while his admi- 106

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50 SUCCESS CLASSICSration of Edison was based on the inventor’s ability to “think thingsthrough.” His achievements are of course inspiring, but what message did Fordmean us to take from My Life and Work? Some comments late in thebook about the concept of “use” perhaps provide the key. He counselsagainst worrying too much about savings and investments as we nor-mally think of them. He says:“You are not ‘saving’ when you prevent yourself from becoming moreproductive. You are really taking away from your ultimate capital; you are taking away the value of one of nature’s investments.”Reﬁning your ability to think should be your investment priority; italways provides the best returns. 107

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1758 The Way to Wealth “Many a one, for the sake of ﬁnery on the back, have gone with ahungry belly, and half starved their families; silks and satins, scarlet andvelvets, as Poor Richard says, put out the kitchen ﬁre. These are not the necessaries of life; they can scarcely be called the conveniences, and yet only because they look pretty, how many want to have them. The artiﬁcial wants of mankind thus become more numerous than the natural.” “You may think perhaps that a little tea, or a little punch now and then, diet a little more costly, clothes a little ﬁner, and a little entertainment now and then, can be no great Matter; but remember what Poor Richard says… beware of little expenses; a small leak willsink a great ship… and moreover, fools make Feasts, and wise men eat them. ” In a nutshell Diligence and frugality build character as they create wealth. In a similar vein Horatio Alger Ragged Dick (p. 12) Warren Buffett (by Roger Lowenstein) Buffett (p. 48) Benjamin Franklin Autobiography (50SHC) Samuel Smiles Self-Help (50SHC) Thomas J. Stanley The Millionaire Mind (p. 258) 108

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CHAPTER 17 Benjamin FranklinP eople associate Benjamin Franklin with statesmanship and being a drafter of the American Declaration of Independence, but his bread-and-butter work for many years was as a publisher, speciﬁ-cally of almanacs. The meat of an almanac is the calendar, and to liven up the pagesFranklin hit on the idea of ﬁlling up the blank spaces with inspiringquotes and aphorisms. Though some were borrowed, others heinvented, and they became a platform for his homespun philosophy offrugality and hard work, but more valuably tips on “procuringwealth.” Called Poor Richard’s Almanack (Franklin’s nom de plume wasRichard Saunders), these bestselling volumes came out every year for aquarter of a century.Listening to Father AbrahamWhat was later called The Way to Wealth was actually the preface tothe 1758 almanac. It was a handy way of putting Franklin’s maxims onthe beneﬁts of thrift into one place, but became hugely popular andwas translated into many languages. What made it enjoyable and enduring was Franklin’s use of a story-telling device by which Richard Saunders happens to overhear an oldman, Father Abraham, lecturing a small crowd in a town square wait-ing for a public auction to begin. The men gathered there voice the time-honored complaint that“times are tough,” but the wise elder tries to knock some sense intothem—quoting heavily from Poor Richard’s Almanack. This naturallydelights the author, who admits that while his writings have broughtsome “solid pudding,” critical acclaim has eluded him. Now he has theeven greater prize of witnessing his maxims become common currency.With this set piece, Franklin achieves the double beneﬁt (the great mar-keter that he was) of advertising his own product and giving it greatercredibility. 109

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BENJAMIN FRANKLIN Spouting the familiar refrain of the small businessperson, one of thecrowd suggests that they can’t prosper with such a heavy tax burden.The old man replies: “The taxes are indeed very heavy, and if those laid on by the government were the only ones we had to pay, we might more easilydischarge them; but we have many others, and much more grievous tosome of us. We are taxed twice as much by our idleness, three times asmuch by our pride, and four times as much by our folly, and from these taxes the commissioners cannot ease or deliver us by allowing an abatement.”He reminds them of a saying in the 1733 Poor Richard’s Almanack that“God helps them that help themselves.”Hard work and independenceRemember that this was pre-revolutionary America, still tied by theapron strings to England. The ethic of strident independence and per-sonal responsibility that we now associate with the United States andwriters like Emerson had yet to grow to maturity. Franklin scholarssuggest that his early writings reﬂect a world being born with newvirtues—principally economic ones. In the new land, thrift and industrywere more likely than anything else to bring success. With weakersocial structures, not class or position but money was security. It was Franklin who said, “time is money.” Father Abraham quotesPoor Richard’s warning: “Dost thou love life, then do not squandertime, for that’s the stuff life is made of.” This is the famous Protestantwork ethic in action; instead of merely working enough to eat and sur-vive, building up wealth is a sign of God’s grace. Franklin was not veryreligious, but he recognized that the secret of a better life is the per-sonal development to be gained from working hard. It is not so muchwhat you gain ﬁnancially, but the self-worth and self-discovery thatcome from pushing yourself. In slothfulness you learn nothing. Wakeup late and you seem to be chasing the day; rise early and you feel incontrol. “Early to bed, and early to rise, makes a man healthy, wealthyand wise.” To counter the common penchant for instant gratiﬁcation, FatherAbraham again throws a quote from the almanac at his listeners, 110

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50 SUCCESS CLASSICSnamely “Constant dropping wears away stones, and by diligence andpatience the mouse ate in two the cable.” With such an image, it is easy to grasp The Way to Wealth’s messageof the virtue of persistence.The joy of frugalityFranklin knew that people were motivated by the prospect of beingrich, but that being frugal was not an especially exciting idea. His solu-tion was to develop witty slogans that conveyed the dignity of thesaver, such as “Plough deep, while sluggards sleep, and you shall havecorn to sell and to keep” and “At the working man’s house hungerlooks in, but dares not enter.” People are always hoping for a windfall, because it lets them off thehook of being careful about their daily expenses. One modern-day heirto Franklin is Thomas Stanley, who in his books The Millionaire NextDoor and The Millionaire Mind reveals that the wealthy generally donot play the lottery; they know that over a long time what you save inkeeping living expenses to a minimum can, if invested, add up to a for-tune. Franklin expresses this fact as “A fat kitchen makes a lean will”and “Beware of little expenses; a small leak will sink a great ship.” When people do receive an inheritance or some gain for which theyhave not had to work, they imagine a life of leisure. As Poor Richardputs it, “A child and a fool… imagine twenty shillings and twenty yearscan never be spent.” Those who cannot appreciate time have the mostmoney problems.The debtor’s prisonFranklin’s point is that those with money are more free and indepen-dent than their neighbors. The way to wealth lies ﬁrst in eliminatingdebt, which lightens the spirit and makes you more conﬁdent andtherefore more productive. “Tis hard for an empty bag to standupright,” Poor Richard says. Yet Father Abraham, toward the end of his speech, adds a note ofmoderation. Lest we all become misers, he is reminded that work andsavings “may all be blasted without the blessing of heaven.” Don’t beuncharitable to those who really need it, because the one thing worsethan being a prisoner of debt is being a prisoner of your conscience. 111

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BENJAMIN FRANKLINAlthough it requires hard work and discipline that you alone canmuster, prosperity is still a gift in which others can share.Final commentsAs the old man’s harangue draws to a close, the market opens andthose in the crowd promptly forget everything they have heard, “buy-ing extravagantly.” While the path to wealth is clearly marked, few are willing to adaptthemselves to the modest discipline that the journey requires. Instead,we choose the shinier track of debt-driven consumption, which we ﬁndfurther along is covered in vines and thorns. It has been argued that Franklin did not follow his own model offrugality and industry, and it is true that he is better known for his risktaking and dashing achievements. The Way to Wealth may thus seem tobe solely for humble folk in hard times, a quaint little essay of only his-torical value. But consider that Warren Buffett, the most successfulinvestor the world has known, enjoys quoting its maxims and livesaccording to its tenets of industry, frugality, and debt aversion. Successdoes often require big risks and vision, but for the details of yourworking life and control of expenses, it is worth remembering thewords of Father Abraham. 112

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50 SUCCESS CLASSICSBenjamin FranklinBorn in 1706, Franklin was the son of a chandler and the youngest of17 children. His early working life was as an apprentice to his brother,who produced one of America’s ﬁrst newspapers. In Philadelphia he setup his own printing shop, and by his late twenties was publishing thehighly successful Poor Richard’s Almanacks. By his early forties he waswealthy enough to retire, and pursued civic improvements such asfounding a library and starting a ﬁre department, and his experimentswith electricity resulted in the invention of the lightning rod. Franklin was a major ﬁgure in the Pennsylvania Assembly, which ledto his role as negotiator between Britain and colonial America, and heserved on a committee that drafted the Declaration of Independence.He was later Ambassador to France. Franklin’s Autobiography wasunﬁnished at his death in 1790, but is a personal development classic. 113

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1974 The Inner Game of Tennis “ The player of the inner game comes to value the art of relaxedconcentration above all other skills; he discovers a true basis for self-conﬁdence; and he learns that the secret to winning any game lies innot trying too hard. He aims at the kind of spontaneous performancewhich occurs only when the mind is calm and seems at one with the body, which ﬁnds its own surprising ways to surpass its own limits again and again. ” In a nutshellYour body is smarter than you think: trust it to achieve the goals you have set. In a similar vein Mihaly Csikszentmihalyi Flow (50SHC)Jim Loehr & Tony Schwartz The Power of Full Engagement (p. 192) Cheryl Richardson Take Time for Your Life (p. 222) John Whitmore Coaching for Performance (p. 294) 114

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CHAPTER 18 W. Timothy GallweyW hen Gallwey wrote The Inner Game of Tennis in the 1970s, there were not many books on the mental side of sports. It was thought that relentless practice of physical skills, com-bined with sheer willpower, made the best players. Gallwey’s experience as a tennis player and a coach, however, wasthat willpower and positive thinking were not reliable bases for a greatgame. You cannot force your brain and body to achieve results. He dis-covered that there is a much easier route to performance, whichinvolves letting the intelligence of the body and the unconscious mindexpress what it knows. The Inner Game of Tennis combined Gallwey’sbackground in education with his tennis experience to create a trulyoriginal work that became a surprise bestseller. With its emphasis onequality between teacher and learner, it was also the seminal work inthe personal coaching ﬁeld.A new way to playThe conventional way of the tennis coach is to criticize every detail ofyour game and give you a hundred instructions about what to remem-ber when you step on to the court. But this is not the way the bodylikes to play. As a tennis pro, Gallwey found that asking players simplyto watch him take shots was more effective than issuing instructions,because you learn more effectively by letting your unconscious mindabsorb images of good play. His conclusion was that “conscious try-ing—directed by the conscious mind—often produces negative results.” You know this instinctively by the fact that when you are playing atyour best you are not thinking in a technical way about your shots—you are a ﬂuid unity of mind, body, court, and racket. You are, to useMihaly Csikszentmihalyi’s famous term, in a state of “ﬂow.” On agood day, it all seems easy. 115

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W. TIMOTHY GALLWEY If this ability to master “the art of effortless concentration” is thebasis of the inner game, how do you go about it? Can it be created atwill?The two selvesAs a player and trainer, Gallwey noticed that most people who havehad tennis lessons know the correct way to make a shot. The problemis acting on what you know. Once you have the skills, your mentalgame is the problem. You sabotage your play by putting yourself downafter a bad shot, worrying about the consequences of losing, or comingto terrible conclusions about your abilities. Gallwey’s discovery was that when someone goes out on to thecourt, two people are playing: Self 1, the instructing, motivating, calcu-lating coach; and Self 2, the one who actually goes out and plays. Theﬁrst self is the “teller,” the part of you that shouts “C’mon!” to putmore intensity into your game, while the second self is the “doer,”playing with a storehouse of memories of every shot ever played. With-out the badgering of Self 1, Self 2 could play brilliantly. The furtherSelf 1 takes matters into its own hands, forcing instructions to“improve” play, the worse the play actually gets.Quiet the mindGallwey’s experience as a tennis coach underwent a transformation. Hemoved from being a technical instructor of “good” shots to simplybeing a quiet model of good play. Instead of criticizing or compliment-ing his students he would just ask them to watch him over and over,then let their mind and body unconsciously replicate his actions. By dis-couraging judgments from either student or coach, the player’s abilitywas revealed and their potential could be realized. Students would “dis-cover” their shots rather than “manufacture” them. Gallwey quotes the Zen master D. T. Suzuki: “Man is a thinkingreed but his great works are done when he is not calculating and think-ing.” Uncluttered with words or instructions, a still mind makes for thebest performance. An unquiet mind starts to judge. We like to say“That was a terrible shot” when in fact it was a shot—not good orbad—and we have tagged meaning on to it. Once you have given anemotional meaning to an event, you are less able to be fully aware of 116

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50 SUCCESS CLASSICSthe next moment because you are caught up in emotion. You will notbe able to see your play clearly, only through the mists of fury ordespond. If you can notice what is happening without too much judg-ment you will naturally maintain concentration and seize opportuni-ties. If you keep judging yourself negatively, it will add up to anegative statement about your whole self—it becomes a self-fulﬁllingprophecy. Paradoxically, success comes when you temporarily withhold judg-ments of success or failure but notice what is. Without such distortions,you can be calmly effective. To play at your best, you must live everysecond in the present. This is concentration. The easy way to concen-tration is through noticing all the details of the game: the way the ballspins, the sound it is making when it hits the racket, the way your armis moving to take a shot, your breathing. While on the surface this mayseem a bit dreamy, it is in fact the opposite, because the moment youreally notice things you are not worrying about what will happen nextor hitting yourself for the point you missed—all your energies arefocused on this moment, this point. The burst of energy, creativity, andresolve that comes from existing in the moment is what the writerEckhart Tolle calls “the power of now.”Larger rewardsThe Inner Game of Tennis is interesting because it asks what success is.For Gallwey, it turned out that winning games was less important thanovercoming his nervousness on court. Playing to the best of his abilitieswithout sabotaging his game with poor thinking—this was victory. People who look only for measurable success, Gallwey says, canhave a one-dimensional existence. It is possible to go through life beingso focused on external achievement that you forget to appreciate thewonders of nature, neglect to love those closest to you, and never stopto reﬂect on your broader life purpose. You need to make a distinctionbetween a compulsion to succeed for the sake of winning, and a desirefor success that will enrich your life and those of others. As Gallweyputs it: “Winning is overcoming obstacles to reach a goal, but the value in winning is only as great as the value of the goal reached.” 117

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W. TIMOTHY GALLWEYIn other words, the purpose of success is not necessarily the achievementof a goal, but the self-knowledge that you gain in striving toward it. The Inner Game of Tennis is very much inﬂuenced by eastern teach-ings, particularly Zen Buddhism. Gallwey’s premise is that through notbeing attached to the fruits of victory (i.e., winning the trophy), youparadoxically become free to play the game for itself in a more relaxedand powerful state of mind. Through nonattachment, winning is morelikely. Tennis, or any other sport, is simply the medium through which youlearn more signiﬁcant elements such as concentration, Gallwey says.Working on your inner game is worth doing, because if you canimprove your concentration or be more relaxed under pressure, theseskills are obviously going to beneﬁt every area of your life, not merelythe one you trained your mind for. In his 1970s language, Gallweydescribes this as “unfreakability.”Final commentsThe Inner Game of Tennis laid the foundation for today’s personalcoaching industry. It put forward ideas that are now commonplace incoaching, such as trusting people to come up with their own solutions;asking questions instead of instructing; visualizing successful outcomes;and appreciating the value of each moment. Its ideas were important to the emerging ﬁeld of sports psychology,and the corporate world also latched on to it. Gallwey’s comment that“almost every human activity involves both the outer and the innergame” explains its wide impact. The book helped to pave the way fortoday’s view that work should be a means of self-expression in additionto being merely a way to make money, and has contributed to the real-ization that “relaxed concentration,” not ﬁerce self-punishment, moreeffectively leads you to true success. There is a surprising amount of information in this slim book, muchof it not touched on here. Spanning human nature, the way the brainand body work, and the meaning of competition and success, TheInner Game of Tennis can be enjoyed even if you have little interest insport. 118

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50 SUCCESS CLASSICSW. Timothy GallweyGallwey won the boys’ division of the US National HardcourtChampionships at 15, and while at Harvard University, where hemajored in English literature, captained the tennis team. He served asan ofﬁcer in the US Navy, and as an educationalist helped to found aliberal arts college. During a break from his career in education, Gallwey took up thepost of tennis pro at a club in Seaside, California. What he had learnedwhile practicing yoga he applied to coaching, with remarkable results.Though not warmly received by professional coaches, The Inner Gameof Tennis became a surprise bestseller. Gallwey has since become a cor-porate trainer, teaching inner game principles to Apple, Coca-Cola, andothers. His other books include The Inner Game of Golf, The Inner Game ofSkiing, The Inner Game of Music, and most recently The Inner Gameof Work. 119

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1961 How to Be Rich “After all, ‘richness’ is at least as much a matter of character, of philosophy, outlook and attitude, as it is of money. The ‘millionaire mentality’ is not—and in this day and age, cannot be—merely an accumulative mentality. The able, ambitious man who strives for success must understand that the term ‘rich’ has inﬁnite shades ofmeaning. In order to justify himself and his wealth, he must know how to be rich in virtually every positive sense of the term. ”“To be truly rich, regardless of his fortune or lack of it, a man must liveby his own values. If those values are not personally meaningful, then no amount of money gained can hide the emptiness of life without them. ” In a nutshell Live by your own values, be your own person. In a similar vein Warren Buffett (by Roger Lowenstein) Buffett (p. 48) Thomas J. Stanley The Millionaire Mind (p. 258) 120

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CHAPTER 19 John Paul GettyH ow to Be Rich is essentially a series of articles that Getty was commissioned to write by Playboy magazine. His intention was to explain himself and why he was a businessman, andsecondly to get behind the myths of what it was like to have greatwealth. Hence the title of the book: not how to get rich, but how to berich.Wildcatter to mogulJohn Paul Getty’s father, George Getty, had grown up poor on an Ohiofarm, but later managed to get through law school supported by hiswife. He became a successful Minneapolis attorney and did well in theOklahoma oil rush. John Paul was born into this relative prosperity in 1892, an onlychild. He writes fondly of a teenage apprenticeship as a roustabout inthe oil ﬁelds, then very much a dusty frontier place of rough men,“where gambling halls were viewed as the ultimate in civic improve-ments.” In utter contrast, he then spent two years at Oxford Universityin the UK before returning to the States. He had planned to enter the US diplomatic service, but at 22 wentinto business on his own as a wildcatter (an independent oil driller andspeculator) and got lucky with some oil leases. He was a millionaire byage 24. Deciding to “retire,” he enjoyed himself for a couple of years,but his parents were not pleased, his father telling him that he had aduty to build and operate businesses that created wealth and a betterlife for people. The oil rush had shifted to California and Getty decided to invest innew oil leases near Los Angeles. His business rapidly expanded over thenext few years, but his father’s death in 1930 was a setback. It was saidthat Getty Sr. left John Paul $15 million. In fact it was $500,000. During the Depression of the 1930s, Getty came up with the idea ofan integrated oil company spanning exploration, reﬁning, and retailmarketing. He bought up oil stocks, which were now very cheap, 121

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JOHN PAUL GETTYpurchased the Pierre Hotel in New York at a bargain price, and begana difﬁcult 15-year takeover of the Tidewater Oil Company, then one ofCalifornia’s largest. After the Second World War Getty Oil gambled$12 million on oil concessions in Saudi Arabia. Though it took a fur-ther four years and $18 million for the wells to produce, by then theworld had become aware of the vast reserves in the area, and the gam-ble paid off handsomely. In 1957, Fortune magazine named Getty the richest man in Americawith an estimated worth of $1 billion. He would from then on receivean average of 3,000 letters a week from strangers requesting money.JPG’s tips on success in business and in lifeBeat your own pathHow to Be Rich was written at the zenith of large-company capitalism,when the species “organization man” evolved to make the most of hissmall place in the corporate machinery. Getty describes this person as“dedicated to serving the complex rituals of memorandums and buck-passing.” In contrast, Getty’s “ofﬁce” in his early years in the oil ﬁeldswas the front seat of a battered Model T Ford. Most executives, Getty observed, would rather become “boot-lickers” to those above them than risk rocking the boat. This wasactually counterproductive, because the only real security in theworkplace was reserved for those who demonstrated that they couldadd value. Successful businesspeople, he believed, were usually rebelsof some description whose wealth was built on rejection of the statusquo. For example, Getty does not mention his purchase of oil stock atlow prices after the Wall Street Crash as a boast, but to demonstratethat the businessperson who does not follow the pack often “reapsfantastic rewards.”Be open-mindedGetty had invited an outspoken socialist to a dinner party at his SuttonPlace mansion just outside London. Another guest, a fellow American,was appalled. Getty did not apologize; in fact, he felt he was honoringthe great American tradition of encouraging dissent. Hearing views dif-ferent to your own, he believed, “adds spice, spirit, and an invigoratingquality to life.” 122

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50 SUCCESS CLASSICS Writing at the beginning of the 1960s, he correctly forecast that the“vanished dissenters” would soon reappear, and knew that the eco-nomic future would be brighter because of it. Getty’s moral was thatwealth was only ever generated by open minds, because only such intel-lectual openness enables us to see opportunities that others do not. Thealternative was a society “lulled into a perilous somnolence,” unable totell the difference between spin and truth, prey to lobbyists and propa-gandists. Despite appearances, like many of the truly rich Getty wassomething of a radical.Enrich your life with artGetty humbly saw himself as a patron of the arts on a scale at leastequaling the Medicis of Renaissance Florence, and is amusing whendiscussing the average American’s lack of cultural knowledge. He calledart “the ﬁnest investment,” not merely because it more than held itsown ﬁnancially, but because of the pleasure of living with beautifulthings. In return for enriching the world, the wealth creator had a dutyto support those who lived for their art. Yet he also saw business itselfin creative terms, noting that those at the top are “creative artists”instead of simply “artisans of business.” On collecting itself, Getty dissolves the myth that it is a rareﬁed pas-time for the rich, mentioning several acquaintances in regular jobs whohad built up excellent collections. Anyone with enough money can paytop dollar at Sotheby’s, but the true collector is a scholar who appreci-ates the background of each piece bought. As Getty rather poeticallyputs it: “To me, they are vital embodiments of their creators. They mirror the hopes and frustrations of those who created them—and the times and places in which they were created.”What could be more fascinating or enriching?Get the facts, then actIn a chapter titled “Business blunders and booby traps,” Getty saysthat many mistakes in business and in life result from a failure to dis-tinguish between fact and opinion or hearsay. He once commissioned a geologist to report on the potential of anoil lease. The report said that there was little chance of ﬁnding oil, so 123

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JOHN PAUL GETTYGetty sold the lease. It later turned out to be part of the huge Yale oilpool. Yet Getty did not blame the expert, only himself for accepting hisview without question and not getting another opinion. Businesspeople frequently accept as fact what they have heard orread without doing their own investigation or study. This is not so badon its own, but when the results will affect a whole enterprise and thelivelihoods of workers, it is an important point. If you have made adecision that is based on facts, stick to it. Have the courage of yourconvictions. The relaxed businessperson, Getty says, is always muchmore effective, and if you have done your homework your resolve willbe less likely to be sabotaged by worry.Final commentsGetty notes that of the tens of thousands of Americans who take theirlives each year, a signiﬁcant number are classed as “economic sui-cides.” His point is that many scramble for and achieve ﬁnancial suc-cess, but when they get it they ﬁnd that it lacks meaning. People needto believe that their efforts are increasing value and enriching theworld in some way, that they are engaged in real creative effort andnot simply status seeking. Getty himself gained a reputation as a miser because he famouslyput a payphone in the hall of his Sutton Place mansion. (Guests hadbeen using the regular phones to make transatlantic calls.) Yet with thepassage of time, we can see that if it were not for the man’s dedicationto eliminating waste and maximizing resources, millions of peopletoday would not be enjoying what he left. He is now, after all, morefamous as an art collector and philanthropist. The collection he createdis one of the world’s best—as anyone who has been to the GettyMuseum at Malibu, California will attest. Getty was a great believer in the free enterprise system, but was notthe arch-capitalist that many people think. He never complained abouthigh wages, taking the Henry Ford view that a work force that wasnot well paid would not buy the products you were trying to sell. Asfor unions, he respected their desire to better the lot of the worker andconsidered them a legitimate part of a productive economy. A millionaire had to accept everything with good humor, Gettyrealized. When he was named “richest man in the world,” he had ahard time explaining to journalists that he did not sit on mountains of 124

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50 SUCCESS CLASSICScash; nearly all his wealth was tied up in infrastructure and opera-tions, and he was working 16–18 hours a day to keep it all going. Headmits that his marriages suffered and fell apart as the result of hisdedication to work, and there were books he had wanted to read anddidn’t have the time for—but on the whole, he reﬂected, he had led anexciting and rewarding life. 125

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1956 How to HaveConfidence and Powerin Dealing with People “Various scientiﬁc studies have proven that if you learn how to deal with other people, you will have gone about 85 percent of the waydown the road to success in any business, occupation, or profession, and about 99 percent of the way down the road to personal happiness. ”“Human relations is the science of dealing with people in such a waythat our egos and their egos remain intact. And this is the only method of getting along with people that ever brings any real success or any ” real satisfaction. In a nutshell Everyone hungers for appreciation and acceptance. If you can genuinely provide these you will have the key to human inﬂuence. In a similar veinFrank Bettger How I Raised Myself from Failure to Success in Selling (p. 24) Dale Carnegie How to Win Friends and Inﬂuence People (50SHC) Stephen R. Covey The 7 Habits of Highly Effective People (p. 90) Brian Tracy Maximum Achievement (p. 264) 126

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CHAPTER 20 Les GiblinF or every person who loses their job because they have failed to do it effectively, another two get the sack because they cannot deal properly with other people. In the opening pages of his 1950s clas-sic, Les Giblin says: “If you will stop and think a minute, the chances are that you will say that the people you know who are the most successful, and enjoy life the most, are those who ‘have a way’ with other people.”But how do they acquire this “way”? He suggests that people with top-rated interpersonal skills have amuch better understanding of human nature; they don’t think ofhuman nature in terms of “good” or “bad” or how they would like itto be, but as it is. Naturally, this understanding of what drives peopleprovides greater insight into why they act the way they do, allowinggreater ease and power in communication.Recognizing the divine sparkInﬂuence is an art, Giblin says, that stems from knowledge of the sensi-tivity of the ego. He mentions the case of a man who strangled awoman who fell asleep while he was talking to her, and a boy whorobbed a bank to prove his manliness after having been teased for yearsabout his buckteeth. The more wounded the ego, the greater theextremes a person will go to in order to defend it. Yet the ego has also been described as a “divine spark” that gives usthe belief that we can do great things. We take for granted our own 127

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LES GIBLINvalue and dignity, and any approach to dealing with people must takethis into account. Just as the body needs food, a person needs this senseof self-worth to be frequently afﬁrmed; a rich person needs compli-ments as much as one who is downtrodden. When respect is not given, the ego may enlarge to make up for theattempt to shrink it; this is why loud-mouthed and dominating peopleare usually found to have low levels of self-esteem. But how do youdeal with such people? If you enter into a ﬁerce exchange with themyou may “win the argument but lose the sale.” Giblin says that ﬁghtingﬁre with ﬁre will only inﬂame the other person. On the premise that “ahungry dog is a mean dog,” the only way to inﬂuence a troublemakeris to feed their ego, by ﬁnding something—even something small—withwhich you can genuinely compliment them. Though we are often toldto appeal to a person’s reason to convince them of something, in truthreason is not a great persuader. Giblin relates the story of General Oglethorpe, who had no successwith his logical arguments in persuading King George to fund a newcolony in America—until he pointed out that none of the colonies hadyet born the king’s name. Thus the state of Georgia was born, fullyﬁnanced, from insight into the cravings of the ego. If you want to getsomeone to do something for you, always think of a personal reasonwhy they would be willing to do it, something that will afﬁrm theiridentity. “Men and women who have the most inﬂuence with otherpeople are men and women who believe other people are important,”Giblin says.How to convinceGiblin refers to three Yale psychologists who found through a series oftests on people that the best way to get ideas accepted is to calmly pre-sent the facts, with no threats or attempts to force the argument. Peoplelike to make up their own mind. He refers to other researchers fromNew York University who spent hundreds of hours eavesdropping onsalesmen at work, and also watched debates at the United Nations tosee who won and why. Their conclusion was that the UN professionalswere less successful in getting their point across because they tried tobeat down their opposition through argument. The fundamental mis-take made in trying to convince another person of something, theresearchers found, is to attack them (their ego). This may force a vic- 128

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50 SUCCESS CLASSICStory of sorts, but not one in which the other person comes to see thingsthe way you do. Giblin says: “Tell a man that his ideas are stupid, and he will defend them all the more… Use threats, or scare tactics, and he simply closes his mind against your ideas, regardless of how good they may be.”Giblin’s “Six tested rules for winning arguments” include No. 5: “Speakthrough third persons.” People won’t necessarily listen to your argumentfor something, but they will listen to impartial third parties. This is whya lawyer produces witnesses to convince a jury, and why customer testi-monials are employed to sell a product. Use common or expert opinionas a low-pressure means of getting people to think your way. No. 6 is “Let the other person save face.” Giblin notes that oftenpeople would change their mind to your way of thinking except for onething: they have already committed to their position and can’t or won’tback down. But the “skillful persuader” is always able to ﬁnd a loop-hole through which the other person can crawl gracefully, rescuingthem from their own argument.Drawing forth friendlinessStudies of successful individuals reveal a common denominator: skill inusing words. They are good at small talk and engaging people in con-versation. Less successful people are afraid of saying something stupid,so are less inclined to pipe up. Giblin mentions the English author JohnRuskin, who said that he wrote well only when he was not trying towrite well. The same applies to conversation. To be good it must berelaxed, and to be relaxed there must be a fair amount of idle banter.Even Shakespeare wasn’t afraid to be trite. A game show host has the ability to make people feel at easebecause of his light-hearted chitchat, yet nobody thinks him a fool—hehas an uncommon skill. He gets people talking by asking them aboutthe one thing he knows they are truly interested in: themselves. We sayto “strike up” conversation, because you must start small, with aspark, but it can lead to a bonﬁre of ideas and amusement. Don’t beafraid of small talk; if nothing else, it is a way to ﬁnd out interestinginformation. “Nuggets and gems in conversation come only after youhave dug a lot of low-grade ore,” Giblin remarks. 129

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LES GIBLIN One further tip on conversation: Because anything that threatensself-esteem is dangerous, you should never be sarcastic. Giblin points toresearch showing that people do not like to be made fun of, even byclose friends, but will never mention it because it would make themsound like a bad sport.How to motivate othersThe best way to get a job done is not to ask someone to do somethingfor you, Giblin says, it is to ask them to help you think about how todo it. This makes them feel appreciated for their brain, not just theirbrawn, and they will be motivated to demonstrate their intelligence.Winston Churchill, Giblin reports, said: “I have found that the bestway to get another to acquire a virtue, is to impute it to him.” Let aperson know you think they can do something, and they will.Final commentsAt ﬁrst glance, this book is a good example of the shallow personalitytechnique manuals that we associate with the 1950s and 1960s. In fact,it is more like Carnegie’s How to Win Friends and Inﬂuence People inits insistence on genuinely valuing the importance of other people andrecognizing the centrality of people skills to success. It may seem the sort of book that only a salesperson would buy, butthis assumption could deprive you of tips and ideas that could turn outto be vital to your success. Most of its references are dated, but thebook endures because people do not change. To be a scholar of successyou have to be a student of human nature, and How to HaveConﬁdence and Power in Dealing with People is highly valuable as aguide to people as they are. 130

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50 SUCCESS CLASSICSLes GiblinThrough his “human relationship clinics” and other seminars, Giblinhas worked to improve interpersonal skills in many of America’s largestcompanies and hundreds of sales and marketing clubs. He is a formertop salesman and was Salesman of the Year in 1965. His other books include the bestselling Skill with People. How toHave Conﬁdence and Power in Dealing with People has sold over halfa million copies. 131

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1647 The Art of Worldly Wisdom “ 21 The art of success Good fortune has its rules, and to the wise not everything dependsupon chance… the real philosopher has only one plan of action: virtue and prudence; for the only good and bad fortune lie in prudence or rashness.” “65 Elevated taste… You can judge the height of someone’s talent by what he aspires to. ” Only a great thing can satisfy a great talent. In a nutshellMake distinctions, look for subtlety and nuance. Success requires ﬁne observation of human nature and reﬁnement of the self. In a similar vein Chin-Ning Chu Thick Face, Black Heart (p. 62) Sun Tzu The Art of War (p. 270) 132

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CHAPTER 21 Baltasar GracianT he Art of Worldly Wisdom should be read by every contemporary success scholar. You may be familiar with Machiavelli’s The Prince, but Gracian’s relatively obscure work is much more appli-cable to succeeding in everyday life, is richer philosophically, and isoverall much more enjoyable. Unlike The Prince, it does not ask you tobuild your success on the bodies of other people; rather, eminence andinﬂuence are to be achieved through observation and personalreﬁnement. First translated into English as The Courtier’s Manual: Oracle andthe Art of Prudence, this work of a Spanish Jesuit priest has beenquietly inﬂuential among those who know for the last 300 years. Itwas imitated by Le Rochefoucauld, whose Maxims (1665) followedGracian’s style of succinct character analysis, and the English essayistJoseph Addison considered the work of great value. FriedrichNietzsche wrote, “Europe has never produced anything ﬁner or morecomplicated in matters of moral subtlety.” Arthur Schopenhauertranslated it into German and thought of it as “a companion forlife.” Christopher Maurer’s excellent translation and introduction to thework have revived interest in Gracian and are used here.Becoming substantialOnce a popular girl’s name in the English-speaking world, Prudence isnow old-fashioned. Yet in most dictionaries to be prudent means to beshrewd, wise, discerning, and penetrating. Its Latin root, prudentia,means foresight. Without these qualities, is it likely we would ever succeed? Graciancompels each of us to become “a person of substance.” Of the 300aphorisms that comprise his book, consider no. 75: 133

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BALTASAR GRACIAN “A person of substance. If you are one, you will take no pleasure in those who aren’t. Unhappy is the eminence that isn’t founded on substance… Only the truth can give you a true reputation, and only substance is proﬁtable. One act of deceit calls for many others, andsoon the whole ghastly construction, which is founded in the air, comes tumbling down.”Every era will have its gold rushes, booms, and bandwagons, butGracian’s statement that “only substance is proﬁtable” should beremembered. In the success literature Benjamin Franklin expounded thenotion, and Stephen Covey made it the foundation of The 7 Habits ofHighly Effective People.Patience and successAphorism no. 55 is: “Know how to wait”: “Stroll through the open spaces of time to the center of opportunity.Wise hesitation ripens success and brings secrets to maturity. The crutch of Time can do more than the steely club of Hercules… Fortune gives larger rewards to those who wait.”This is obvious enough, but the way Gracian says it reconnects youwith the power of waiting for the right moment. Though it involvesself-discipline, the payoff is watching your stakes slowly rise. The famous and brilliant are attractive, but the very heights they climbmake them susceptible to falls. What people love irrationally, Gracian says,they can also end up hating with the same passion. As he says elsewhere: “Be excessive in your perfection but moderate about showing it. The brighter the torch, the more it consumes itself and the less it lasts. To win true esteem, make yourself scarce.”Are you a person who knows how to wait, or are you a bright torch? Iswhat you are doing with your life something that will endure? In apho-rism no. 57 Gracian writes: “Thoughtful people are safer. Do something well, and that is quick enough. What is done immediately is undone just as fast, but what 134

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50 SUCCESS CLASSICS must last an eternity takes that long to do. Only perfection is noticed,and only success endures… So with metals: the most precious of them takes longest to be reﬁned, and weighs most.”Mastering yourself and knowing your talentsWithout self-mastery you can never master others, says Gracian. Theessence of power is self-knowledge, and a major part of this is emo-tional intelligence. At all times seek to be a civilized person, avoidingthe vulgarity of uncontrolled passion: “52 Never lose your composure. Prudence tries never to lose control. This shows a real person, with a true heart, for magnanimity is slow to give in to emotion. The passions are the humors of the mind, and theleast excess sickens our judgement. If the disease spreads to the mouth, your reputation will be in danger. Master yourself thoroughly and no one will criticize you for being perturbed, either when things are at their best or at their worst. All will admire your superiority.”Gracian’s philosophy is about ﬁnding the “edge” that will separate youfrom the pack. While able in his roles as chaplain, confessor, andadministrator, he knew that he had no special talent in them. He real-ized that his true role was as a scientist of success and character, and hesought out the scholarly, the cultured, and the powerful in order toreduce their knowledge, and his own observations, to a valuableessence. This was not an obvious job description in his time and place,and indeed the church tried to stop him publishing his writings. Almost speaking to himself, one of Gracian’s aphorisms is “Knowyour best quality, your outstanding gift.” Discovering your area ofsuperiority is a central task in life; without this effort you will wasteyour time imitating others.CommunicatingAs a writer, Padre Gracian was perhaps biased about the power ofgood writing. However, he understood that if you could communicatewith ﬁnesse your standing would be greatly enhanced. The successfulperson is always a master convincer, whether it be in writing or in per-son. In the 14th aphorism, Gracian observes: 135

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BALTASAR GRACIAN“The wrong manner turns everything sour, even justice and reason. Theright one makes up for everything: it turns a ‘no’ golden, sweetens truth, and makes old age look pretty. The ‘how’ of things is very important,and a pleasant manner captures the attention of others… Speak and act well and you will get out of any difﬁcult situation.”The Art of Worldly Wisdom apparently has some popularity amongspin doctors for its insights into how to present things well, yet suchpeople should not gloss over the fact that Gracian counseled never toexaggerate. And for the chatterer, he offered the view that whethersomething is good or bad, its announcement will beneﬁt from brevity.Making things only as long as they need to be induces a trust that thewindbag and the wordy never gain.Final commentsThese are only a handful of Gracian’s 300 epigrams. If you would liketo do more than scratch the surface, get the book. ChristopherMaurer’s translation is very accessible for everyday use, and containssome fascinating insights into Gracian’s personal life. The Spain in which the priest lived was in long-term political declineand much less stable than it had been. Some of the aphorisms seem tocome from a position of fear, and The Art of Worldly Wisdom mayseem very cynical in places. Overall, though, the book is timeless in itsattempt to expose the truth about human action and motivation, “theway people are, rather than the way they would like to be or appear.” Gracian’s message is that good people do not disadvantage them-selves because they are good, but because of their rosy naivety. Yourtask is to spread further what goodness you have while working withinthe world. Although the church did not like him publishing such a worldly andpolitical work, Gracian’s manual, in its emphasis on reason and theintellect, is very Jesuitical. For a man of the cloth it is perhaps surpris-ing that there are few hard and fast moral rules in the book, only—asMaurer notes—“the conviction that to reach perfection one must adaptto circumstance.” Rigidity of mind can win some battles, but only themutable and mindful are enduringly successful. 136

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50 SUCCESS CLASSICSBaltasar GracianBorn in 1601 in Belmonte, a village in the Spanish region of Aragon, inhis teens Gracian lived in Toledo and Zaragoza, studying philosophyand letters. He entered the Jesuit order at age 18 and remained in it forthe rest of his life. At various times he was chaplain, professor, adminis-trator, and confessor (personal priest) to aristocrats, and was rector andvice-rector of several Jesuit colleges. His earlier works include treatises on the ideal qualities of politicalleaders, El héroe (1637) and El politico (1640). However, his literarymasterpiece is considered to be El criticón, “The Master Critic”(1651–57). A satirical novel that contrasts primitive life with “civiliza-tion,” when the third volume was published without the permission ofthe Jesuit order, Gracian was removed from his post in Zaragoza andexiled to a small country town. He died there in 1658.Christopher Maurer is a professor of Spanish at the University ofIllinois-Chicago. He has also translated the works of Spanish poetFederico García Lorca and is an authority on Renaissance and BaroqueSpanish poetry. 137

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1997 How to Succeed in Business without Being White “Money makes people listen. When you have it, then you have something others want and need. When you don’t you become invisible. Your needs become irrelevant. Your success, or lack of it, is your problem. How can we build wealth when we have so many obstacles to opportunity? If you pay attention to the challenges we’vetalked about, it will be difﬁcult to deny you opportunity. If you read andfollow the advice in this book, you will make your own opportunities in spite of the nuisances, hatred, and ignorance you encounter. ” In a nutshell Recognize and use your background in the service of attaining your goals, and remember to give something back. In a similar vein Les Giblin How to Have Conﬁdence and Power in Dealing with People (p. 126) Nelson Mandela Long Walk to Freedom (p. 198) 138

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CHAPTER 22 Earl G. GravesI n 1991, the newly freed Nelson Mandela made a trip to the United States and met a group of the country’s top African American businesspeople. Their leader was Earl Graves. As a result of this ini-tial contact, Graves put together a deal to create a $100 million fran-chise to bottle and sell the Pepsi soft drink in the new South Africa.Though the deal obviously made a great deal of business sense, Graveshighlights it as proof of how far black entrepreneurship had come, notmerely in the US but internationally. Graves himself is a symbol of black America’s transition from a focuson civil rights to economic empowerment. The era of John F. andRobert Kennedy, then Lyndon Baines Johnson, was a heady time forAfrican Americans, as it seemed that the law would protect their right tolive a prosperous life along with everyone else. How to Succeed inBusiness without Being White: Straight Talk on Making It in Americaconveys the excitement of this period, but also reﬂects on the difﬁcultrealities of trying to do business amid continuing mistrust and prejudice. Nevertheless, Graves’s overall message is reminiscent of Nietzsche’sfamous line, “That which does not kill us makes us stronger.” Beingblack is an advantage, because African Americans have to be betterthan the average to stand out, a fact that has been instrumental in thesuccess of many a minority.Becoming a playerGraves grew up in Brooklyn, New York, his parents the offspring ofimmigrants from Barbados. At Morgan State University in Baltimore(1953–57) he took business as his major, which some classmates and 139

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EARL G. GRAVESeven professors thought was ridiculous. Though this was only 50 yearsago, it was then a given that business was for whites. But Graves hadan entrepreneurial bent and his thinking was “basketball was once thewhite man’s game too.” After graduation he became a captain in the Green Berets, then areal estate broker, but politics beckoned. From 1965 to 1968 Gravesworked on Robert Kennedy’s staff; Kennedy was then a Senator ofNew York and preparing for his bid for the presidency. He had, ofcourse, been a champion of black America in his brother’sadministration. The experience of working with Kennedy opened Graves’s eyes tothe power and wealth of the white American elite, and even thoughthey were in the same camp, Kennedy seemed to him to be from aanother world. According to Graves, Kennedy never carried money ora wallet, indeed hardly seemed ever to have to think of money. Tosomeone who had been raised in an environment of lack, this clearlyinspired Graves as much as the political agenda, and he began to seehow psychologically liberating wealth could be for AfricanAmericans. If Kennedy had not been assassinated and had been electedpresident, Graves would no doubt have joined his administration in ahigh-ranking position. As it turned out, the tragedy hastened thedevelopment of his idea for a publication focusing on black economicadvancement. After a decade of civil rights reforms under the Democrats, businessdevelopment was moving on to the agenda, and Graves felt that thetime was right to launch a journal celebrating black business achieve-ment. Although originally envisaged as a newsletter, Black Enterprisegrew into a fully ﬂedged commercial magazine with advertising, andwas proﬁtable within ten issues.Waking up to black economic powerGraves describes his efforts in the early days to convince white market-ing executives in large companies that they should advertise in the mag-azine. The familiar refrain was, and in some cases continues to be,“Black people don’t buy luxury cars/computers/insurance/ﬁnancialinstruments.” Often he was told, “We don’t want our product associ-ated with African Americans.” 140

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50 SUCCESS CLASSICS An example he provides is the effort to get Mercedes-Benz Americato advertise in Black Enterprise, even though he had ﬁgures showingthat wealthy blacks were ﬁve times more likely than wealthy whites tobuy a Mercedes. He ended up going to the company’s top person inGermany, and only then did ads for the cars start appearing in his mag-azine. Fittingly, Graves now sits on the board of the DaimlerChryslercorporation. Racism, he found, was more likely in the middle levels of an organi-zation than at the top, but was encountered everywhere in both obvi-ous and subtle forms. Graves relates what tends to happen when ablack man sits down in a ﬁrst-class airline seat: the white person nextto him will usually presume he is someone big in sports or entertain-ment, even if, in Graves’s case, he is close to retirement age! African Americans comprise 12 percent of the American popula-tion and earn over $400 billion annually, but as a recent BlackEnterprise article (August 26, 2003) noted, black Americans still onlymake 59 percent of what whites do, which is only 2 percent morethan in 1963. At a time when much afﬁrmative action legislation is being watereddown, Graves provides a powerful argument that doing business fornonwhites can still be a struggle. The landmark civil rights march onWashington recently celebrated its fortieth anniversary, but there waslittle nostalgia because there is still so much to do. Graves believes that the answer lies in creating more black-ownedbusinesses and getting those businesses to work with each other wherepossible. He admires how Irish and Jewish Americans built on theirsense of identity to hoist themselves into the upper echelons ofAmerican life, and notes that a sense of collective identity is crucial tobusiness success. Many people are not aware that there is a black business network,but Graves enjoys highlighting some of the success stories. Just a sam-ple includes:❖ Percy Sutton, theater owner and broadcaster.❖ Clarence Avant, chairman of Motown Records.❖ Howard Naylor Fitzhugh, business professor and ﬁrst Harvard MBA.❖ The late Arthur Gaston, founder of Booker T. Washington Insurance Company. 141

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EARL G. GRAVES❖ John Johnson, publisher of Ebony and Jet magazines.❖ Travers Bell and Willie Daniels, co-founders of Daniels & Bell, the ﬁrst black-owned investment ﬁrm listed on the NYSE.❖ Oprah Winfrey, television host and producer.❖ Ann Fudge, food and beverage retailer.❖ The late Ron Brown, President Clinton’s Secretary of Commerce.Of course, since Graves wrote his book Colin Powell and CondoleezzaRice have become senior ﬁgures in the Bush administration, andbusiness ﬁgures such as Franklin Raines (CEO of the huge Fannie Maemortgage house) are making African Americans seem more common-place at the top of the corporate world. The book has a multitude of tips for success, including sections onnetworking, buying and operating a franchise, creating a business plan,and attracting ﬁnance. This material will be useful for anyone starting out in business orseeking to expand, and indeed, the foreword written by Robert L.Crandall, retired CEO of American Airlines, suggests that the bookmight well have been called simply How to Succeed in Business.Final commentsGraves’s experience, and the lesson for us all, is that while money is thegreat leveler, color-blind and culturally neutral, it still pays to maintainyour links to communities that can provide psychological support aswell as business leads. This book is an eye-opener not merely for African Americans but foranyone who has failed to appreciate the extent of black economicpower. As Peter Schwartz notes in Inevitable Surprises: Thinking Aheadin a Time of Turbulence (2003), immigration is changing the makeup oftraditionally white societies such as the United States, Britain, Canada,and Australia. There is a chance that in the future, white people willnot only be outnumbered in many ﬁelds but may ﬁnd themselves out-classed. One of Graves’s excellent points is that if you can succeed inbusiness without being white, you will develop a thick skin and adegree of conﬁdence and creativity that your white colleagues maynever have needed to develop. A New York Times and Wall Street Journal bestseller, Graves’s bookis not the only work of its type. Consider Why Should White Guys 142

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50 SUCCESS CLASSICSHave All the Fun? by the black Wall Street ﬁnancier Reginald F. Lewis,and two books by Dennis Kimbro, Think and Grow Rich: A BlackChoice and What Makes the Great Great. 143

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1937 Think and Grow Rich“We live in a world of over-abundance and everything the heart could desire, with nothing standing between us and our desires, excepting lack of a deﬁnite purpose. ”“I had the happy privilege of analyzing both Mr. Edison and Mr. Ford,year by year, over a long period of years, and therefore, the opportunity to study them at close range, so I speak from actual knowledge when Isay that I found no quality save persistence, in either of them, that even remotely suggested the major source of their stupendous achievements. ” In a nutshell Wealth comes from increasing your power to think and developing your ability to access the universe’s intelligence. In a similar vein Napoleon Hill & W. Clement Stone Success through a Positive Mental Attitude (p. 150) Robert Kiyosaki Rich Dad, Poor Dad (p. 172) David J. Schwartz The Magic of Thinking Big (p. 240) Wallace D. Wattles The Science of Getting Rich (p. 282) 144

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CHAPTER 23 Napoleon HillA ny book with the word “rich” or “success” in the title has a better than average chance of selling well; money and external achievement are basic to our time, as rank and honor were tothe Middle Ages. A compelling title might explain an initial rush to buya book, but in the last 65 years Think and Grow Rich has sold over 15million copies worldwide. Why? Hill refused to accept that success was the domain of luck or back-ground or the gods, and wanted to provide a concrete plan for successthat depended entirely on yourself. The book also sold because it wasnot simply Hill’s dreamed-up ideas, but a distillation of the successsecrets of hundreds of America’s most successful men (there weren’tmany female tycoons in the 1930s), beginning with his patron, steelbaron Andrew Carnegie (see p. 56). Carnegie had given Hill letters ofintroduction to the likes of Henry Ford, Thomas Edison, and F. W.Woolworth, and he would spend 20 years synthesizing their experienceand insights. Hill’s mission was simply to know “how the wealthybecome that way,” and his systematic approach to success became theeight-volume Law of Success (1928). Think and Grow Rich is a condensed form of this larger work, writ-ten while Hill was an adviser to Franklin D. Roosevelt. The prose has agalloping energy to it and the early pages allude to a secret that thebook contains but does not spell out. Hill suggests that you “stop for amoment when it presents itself, and turn down a glass, for that occa-sion will mark the most important turning point in your life.” Try toresist that! The book has no shadows or complications, setting out thethings that “work,” and leaving others, rightfully, to the realm ofmystery.Money and the spiritNear the end of Think and Grow Rich, Hill admits that the main rea-son he wrote it was “the fact that millions of men and women are par-alyzed by the fear of poverty.” This was in the America of the 1930s, 145

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NAPOLEON HILLstill scarred by the Depression, when most people were focused onavoiding poverty rather than getting rich. That Hill’s book did not stopat poverty avoidance, but dared to be about becoming fabulously rich,may have forever classiﬁed it in some minds as a greed manual, but thisis precisely what gave it its huge attraction. The link between spiritual values and making money is somethingthat non-Americans may ﬁnd difﬁcult to take seriously or even compre-hend, yet it is the very expression of American morality. Wealthcreation is a product of mind, combining reasoning, imagination, andtenacity. Hill understood that uniqueness, expressed in a reﬁned idea orproduct, would always eventually meet with monetary reward. The concept that all earned riches and achievement come from themind is commonplace now—it is the basis of the knowledgesociety/information age. Yet in 1937 Hill was already talking about“brain capital” and marketing yourself as a provider of nonphysicalservices. The sage-like qualities of the book are encapsulated in its title:“Think and grow rich” is effectively the motto not of Hill’s era but ofour own.DesireHill relates the story of Edwin C. Barnes, who arrived on ThomasEdison’s doorstep one day and announced that he was going to be theinventor’s business partner. He was given a minor job, but chose not tosee himself as merely another cog in the Edison business wheel, imagin-ing himself as the inventor’s silent partner. This he eventually didbecome. Barnes intuitively knew the success secret of willingness toburn all bridges, ensuring that there is no retreat to a former, mediocrelife. Having a deﬁnite purpose always yields results, and Hill includes asix-step method, developed by Andrew Carnegie, for turning “white-hot desires” into reality. Hill counsels never to worry if others think your ideas are crazy.Marconi’s friends took him to a mental hospital for believing that hecould send “messages through the air” (he invented radio). Hill’sfamous statement is “What the mind of man can conceive and believe,it can achieve,” but his great insight is that no more effort is requiredto aim high in life than to accept an existence of misery and lack. Hequotes the verse: 146

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50 SUCCESS CLASSICS “I worked for a menial’s hire Only to learn, dismayed That any wage I had asked of Life Life would have willingly paid.”Infinite IntelligenceA deﬁning feature of this classic is its respect for the ineffable, and thesuggestion that mental attunement with “Inﬁnite Intelligence” (the uni-verse, or God) is the source of wealth. Hill realized that consciousnesswas not conﬁned to the brain; rather, the brain was an element of thegreat uniﬁed mind. Therefore, to be open to this larger mind was tohave access to all knowledge, power, and creativity. He mentions Edison’s retreats to his basement where, in the absenceof sound and light, he would simply “receive” his ideas. A personreceptive to this realm is likened to a pilot ﬂying high above where nor-mal people work and play. Such vision allows them to see beyond thestrictures of regular space and time.The subconscious: our connection to Infinite IntelligenceHill illustrates the concept of Inﬁnite Intelligence through analogy to aradio receiver. Just as you can receive important messages if you aretuned in, thoughts you hold about yourself are effectively beamed outto the world through the subconscious, boomeranging back as your“circumstances.” By understanding that your experiences matter onlybecause of how you perceive them, and becoming the master of yourown thoughts, you can control what ﬁlters into your subconscious. Itbecomes a better reﬂection of what you actually desire, and “broad-casts” to the inﬁnite realm clear messages of those desires. Since all thought tends to ﬁnd its physical equivalent, you create theright conditions for manifesting your desires. This is why it is impor-tant to write down the exact ﬁgure of how much money you want topossess. This amount, once entrenched in your subconscious, isremoved from the conscious mind and its doubts, and helps to shapeyour actions and decisions toward its realization. The concept extends to prayer. Most people give up on prayerbecause it doesn’t work for them, but Hill believed this to be essentiallya failure of method. Whatever you seek through prayer has a slim 147

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NAPOLEON HILLchance of happening if it is merely a heartfelt wish, muttered throughthe conscious mind. What you desire cannot remain at this level—itmust become part of your unconscious being, almost existing outside ofyou, for it to have real effect.Final commentsThis is a small taste of Hill. Other chapters of Think and Grow Richcover faith, persistence, decision, procrastination, and creating amastermind of people around you. There is also the classic chapter“The mystery of sex transmutation,” which argues that the energybehind all great achievements is sexual. Some of the book may seemdubious, but if you think that real entrepreneurs are above titles likethis, you won’t have to go far to be corrected. MultimillionairesRichard Dobbins and Barrie Pettman (The Ultimate Entrepreneur’sBook) and real estate tycoon John McGrath (You Don’t Have to BeBorn Brilliant), along with many others, acknowledge Hill’s work as aserious wealth-creating tool. As readers will attest, the book goes beyond money. Hill makes aneffort at the outset to deﬁne “rich” in terms of quality friendships, fam-ily harmony, good work relationships, and spiritual peace. Further, hewarns you not to rely on position or force of authority, remarking thatmost great leaders began as excellent followers and that you have tolearn how to serve before you can achieve. Yet Hill’s central idea, that the source of wealth is nonmaterial, isyet to be fully appreciated. We still tend to worry about our level ofeducation or amount of capital more than about intangible assets suchas persistence, vision, and the ability to tap into the inﬁnite and shapethe subconscious. Successful people are shy of attributing their wealthor inﬂuence to such “spiritual” abilities, but Hill knew their impor-tance. This is why his book continues to be read through decades ofeconomic bust and boom. The source of wealth never ceases to ﬂowand is outside of time. 148

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50 SUCCESS CLASSICSNapoleon HillHill was born in 1883 in a one-room cabin in Wise County, Virginia,and his mother died when he was only 10. He was apparently one ofthe roughest boys in the county, but his new stepmother encouragedhim to become literate. At 15 he began providing articles for localnewspapers. In 1908, while while working for Orison Swett Marden’s Successmagazine, Hill interviewed Andrew Carnegie. The industrialist invitedHill to his estate, where, over the course of three days, Carnegie heldforth on his idea that the principles of success should be laid down inwriting for anyone to follow. He confronted Hill with the question ofwhether he would be willing to spend the next 20 years in pursuit ofthis goal. Hill said “yes,” although his work, culminating in Law ofSuccess, was never funded by his mentor. Hill had worked for President Woodrow Wilson as a public relationsadviser, and returned to the White House under Roosevelt to help writethe famous “ﬁreside chats” radio broadcasts to Americans during theDepression. He was also personal adviser to Manuel Quezon before thelatter became the ﬁrst president of the Philippines. With W. Clement Stone, Hill started the magazine Success Unlimitedand wrote the bestseller Success through a Positive Mental Attitude(1960; see page 150). His last full work was the more philosophicaland autobiographical Grow Rich with Peace of Mind (1967). After hisdeath in 1970, Think and Grow Rich: A Black Choice, for AfricanAmericans, was completed by Dennis Kimbro from Hill’s notes. Michael J. Ritt, president of the Napoleon Hill Foundation inIllinois, chronicled Hill’s life in A Lifetime of Riches (with KirkFlanders). 149

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1960 Success through aPositive Mental Attitude“You were born to be a champion, and no matter what obstacles and difﬁculties lie in your way, they are not one-tenth so great as the onesthat have already been overcome at the moment of your conception. ”“To achieve anything worthwhile in life, it is imperative that you applyPMA, regardless of what other success principles you employ. PMA isthe catalyst which makes any combination of success principles work to attain a worthwhile end. ” In a nutshell Willingness to see the beneﬁt in every disappointment may seem a cliché, but it is a mark of successful people. In a similar vein Andrew Carnegie The Autobiography of Andrew Carnegie (p. 56) Benjamin Franklin Autobiography (50SHC) Napoleon Hill Think and Grow Rich (p. 144) Norman Vincent Peale The Power of Positive Thinking (50SHC) 150

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CHAPTER 24 Napoleon Hill & W. Clement StoneH enry Ford had an idea for a new gasoline engine involving eight cylinders cast in a single block. He knew that such an engine, if put into production, would be a great success. He asked hisengineers to develop it, and they came back and told him it could notbe done. “Produce it anyway,” he told them. They came back withouta workable engine, but he told them to keep trying until they hadsomething. The Ford V8 became one of the most successful engines in history,putting the company way ahead of its competitors. Hill and Stone men-tion this story because it shows how different attitudes alone can pro-duce completely different results. You can put either a positive or anegative spin on any event in life. This idea was demonstrated scientiﬁcally by Martin Seligman. In hisclassic Learned Optimism, he used the term “explanatory style” todescribe the differences between people according to the meaning theygive to events. In studying salespeople, he found that while one sales-person is disheartened by a series of rejections, another will believe theyare getting closer to the person who will say “yes.” Optimists, hefound, perform better statistically.The greatest success principleNapoleon Hill and Clement Stone were great scholars of success, yet inthe one book they wrote together they decided to focus on “positivemental attitude.” After years of studying successful people, they foundthis to be the one thing they all shared. Achievers have an ingrained philosophy of “It can be done,” whilethe rest of the population tend to believe the opposite, focusing on fearrather than faith. Successful people are continually wondering “Whatif?” and setting difﬁcult goals for themselves. They have a different 151

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NAPOLEON HILL & W. CLEMENT STONEattitude to failure, which is seen more as feedback than as any perma-nent comment on themselves. Another attribute of the successful that Hill and Stone found wasthat they “go the extra mile.” Thomas Edison, for instance, conducted10,000 separate experiments before he invented the incandescent lightbulb. It is often when you try one more time that success comes,whereas a negative mental attitude leads you to give up just before thedarkness turns to light. The authors list 17 “success principles,” but suggest that a positiveattitude is the glue that binds them all together. To be positive is toalways embrace life, and success, happiness, and wealth are attracted tothose who are full of life. Negative attitudes only repel these blessings. Many things may be said about why a person becomes successful,but a pleasing personality is vital, not merely for how others see youand whether they will want to deal with you, but for your own self-conﬁdence. “When our attitude toward ourselves is big, and our atti-tude toward others is generous and merciful, we attract big andgenerous portions of success,” the authors write.Read to succeedWritten many years after Hill’s Think and Grow Rich (1937), Successthrough a Positive Mental Attitude includes stories of the many peoplewhose lives were changed after reading that book, such as the cham-pion Australian swimmer Dawn Fraser. While Think and Grow Rich isa motivational powerhouse that grew out of a 20-year study into themost successful men in America, Success through a Positive MentalAttitude is more well-rounded, with an emphasis on succeeding in anyarea of life. It contains many references to business ﬁgures who are not wellknown today, such as Edward Bok (1863–1930), the Dutch immi-grant who became a celebrated editor and publisher (see p. 36), andHenry Kaiser (1882–1967), a philanthropic shipbuilder andindustrialist. In addition, the authors spare a signiﬁcant amount ofword space for the achievements and thoughts of industrialistAndrew Carnegie (see p. 56), who encouraged Hill to devote 20 yearsto studying successful people. While its basic value lies in the concept of positive mental attitude,the book is made more interesting by the way it celebrates the literature 152

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50 SUCCESS CLASSICSof success: everyone from Samuel Smiles (Self-Help, see 50SHC) toOrison Swett Marden (Pushing to the Front, see p. 204) to HoratioAlger (Ragged Dick, see p. 12) is discussed, as well as some of theauthor’s contemporaries such as Claude Bristol (The Magic of Believ-ing, see p. 42) and Frank Bettger (How I Raised Myself from Failure toSuccess in Selling, see p. 24). Yet Hill and Stone reserve their greatestacclaim for the Bible, and include a list of biblical quotations for fur-ther inspiration. Some may wonder how you can discuss the Bible, sales manuals,and Think and Grow Rich in the same breath, but Hill and Stone seeno irony. The success literature can be so broad because it is bound byone golden thread: the idea of living up to your potential in every way.Final commentsSuccess through a Positive Mental Attitude contains a fair amount ofold-style motivational ideas. However the psychological laws thatassisted success in the 1950s are the same today, and the ability tomaintain a positive outlook under pressure is still worth a fortune inthe business world. Stone had discovered this for himself in theDepression, when his insurance business was in trouble and he neededto ﬁnd a way out. He stumbled across Hill’s Think and Grow Rich andits call for “deﬁniteness of aim” helped him turn things around. The two men did not meet until 1952, by which time they couldlook back over many years of failure and success and draw out somelessons. The ﬁrst, they agreed, was that you really could become abetter and more successful person simply by choosing to remainpositive. Nelson Mandela (Long Walk to Freedom, see p. 198) is one of thegreat examples of positive mental attitude in action. No matter whathappened to him, he believed that one day he would be freed fromprison and lead his people into peace. Mandela’s victory is an exampleof what Hill and Stone call “inspirational dissatisfaction,” the motiva-tion you experience when something happens that you feel should notbe happening. But while some people will be engulfed in fury ordepression, others will be determined to make constructive amends.Eleanor Roosevelt (see p. 234), who overcame a tragic childhood andmany setbacks to become “ﬁrst lady of the world,” is another greatexample of consciously choosing to be positive. 153

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NAPOLEON HILL & W. CLEMENT STONE We may know the phrase “turning lemons into lemonade,” but dowe really understand how greatly a positive mental attitude can trans-form our lives? The way we explain things to ourselves is perhaps themost important factor in whether or not we will be a success at some-thing, because while everyone has setbacks, a much smaller set of peo-ple are able to accept them quickly and move on, knowing that thingsmust soon change for the better, as they inevitably do. They have dis-covered the success secret that “optimism is power.” 154

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50 SUCCESS CLASSICSW. Clement StoneStone was born in 1902. His father died when he was still a toddler,leaving the family with no money. The teenage Stone became a news-paper seller on the streets of Chicago to help his mother pay the rent,later moving to Detroit to join her in selling accident and life insurancedoor to door, sowing the seeds for an insurance fortune. He became thefounder and chairman of the Combined Insurance Company, which ini-tially prospered in the Depression through the sale of travel insuranceto the many people on the move throughout America. A noted philanthropist, Stone is said to have given away $275 mil-lion to charity, and was involved in the Boys and Girls Clubs for manyyears. He was also a signiﬁcant donor to the Republican party, andattracted controversy in his ﬁnancial support of the Nixon administra-tion. Famous for his pencil-thin moustache and bow ties, his other best-known work is The Success System that Never Fails. He died at age100. This biography is partly based on Harold Jackson’s obituary in theGuardian, September 17, 2002. Napoleon Hill’s biography is on page 149. 155

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1982 The Official Guide to Success “ Winners almost always do what they think is the most productivething possible at every given moment; losers never do. When you look at what winners and losers actually do moment by moment, thedifference between these two divisions of the human race really is that small. But the results of those small differences keep adding to each other at every given moment until they reach a critical size.”“The most valuable thing you can ever own is your image of yourselfas a winner in the great game of life, as a contributor to the betterment of humankind, as an achiever of worthy goals. Unless you have that image of yourself, nothing worth having will stay with you for long. ” In a nutshell Create a noble aim for your life, then make use of every moment to achieve it. In a similar vein Frank Bettger How I Raised Myself from Failure to Success in Selling (p. 24) Stephen R. Covey The 7 Habits of Highly Effective People (p. 90) Brian Tracy Maximum Achievement (p. 264) 156

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CHAPTER 25 Tom HopkinsH opkins’s personal story is similar to that of Brian Tracy and Frank Bettger, in that his route to success was through selling. His How to Master the Art of Selling may have sold 1.4 millioncopies, but the irresistibly titled The Ofﬁcial Guide to Success is hismost well-rounded book for general life achievement. Though onlysome 170 pages long, it was one of the more prominent success titles ofthe 1980s and is still read. Though the book contains hundreds of good ideas, here we willlook at two or three that stand out. The ﬁrst relates to gaining a newappreciation of how we use our time, and the second to the “self-instructions” we can use to program ourselves for success.Moments that add up to a lifetimeIf you believe that a lifetime’s achievement is the result of vision andaudacious goals, you are right. However, you can make the mistake ofconsidering the masterpiece only after it has been painted; the ﬁnalwork is likely to be the result of years of tiny “brushstrokes,” thosemoments of productivity that seem like nothing at the time but buildup to something big. If there is only one thing that you take from Hopkins’s book, itshould be his statement:“Winners almost always do what they think is the most productive thing possible at every given moment; losers never do.”This does not mean that the successful person is continually frantic,because sometimes the most productive thing you can do is rest, takein a sunset, or talk to your spouse. It does mean that winners knowthe value of every moment, and will push themselves to do things 157

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TOM HOPKINSthat others would not have the self-discipline for. Hopkins does notmention him, but the reader is reminded of Frank Bettger’s statement:“Most of the successful men I’ve met are absolutely ruthless with theirtime.” Just as, to use a ﬁnancial analogy, a sum of money that has its inter-est reinvested over time seems to grow amazingly (the magic of com-pound interest), so in life the cumulative effect of daily work—if tied toa clear goal—seems to produce wonderful results. Of course, it may bedifﬁcult suddenly to become a super-productive person and override thehabits of a lifetime. Therefore, Hopkins supplies us with his “goldendozen,” 12 words that you must repeat to yourself three times a day soyou remember to spend your time productively. This self-instructionreads, “I must do the most productive thing possible at every givenmoment.” At ﬁrst the self-instruction may seem like a cruel sentence (in theprison sense of the word), but soon enough you will ﬁnd that the com-mitment is liberating. You will feel more energetic because the resultsof your new attitude will serve to motivate you even further. Purposecreates energy.Programming successHopkins says that everyone lives according to instructions. These fallinto three categories:❖ Those provided by the wiring of your brain—instinct.❖ Those forced into you during your childhood—dos and don’ts.❖ Those you have created for yourself—self-instructions.While scientists are still trying to work out how and why self-instruction works, Hopkins’s alarming point is that if you have fedyourself only negative instructions on how to live, your achievementswill be negative. Given what you have told yourself, you can only “suc-ceed by failing.” This leaves you with the realization that in the wayyou are living day to day, there is not actually much freedom of choicebecause you are simply acting in a way that you have told yourself youcould or should act. However, you can be made free if you seek to change the instruc-tions, and if those instructions are all of a positive nature it will be dif- 158

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50 SUCCESS CLASSICSﬁcult not to succeed in the areas you want. This is what Hopkinsmeans when he talks about “ﬂipping our switch from lose to win.” We assume that successful people have so much conﬁdence becauseof their successes, but perhaps we have it the wrong way around: theybecame successful because they were generous in their estimation ofthemselves from the beginning. It was their self-belief, their instructionto themselves “You will be an achiever, a star,” that made all the differ-ence, not some lucky break. We all get lucky sometimes, but those whoare determined to be successful anyway will be able to capitalize moston the breaks, because they almost expect good luck to happen to them. Hopkins suggests writing out on cards ten self-instructions thatrepresent the sort of person you want to be. If you are in sales, forinstance, Hopkins suggests: “I always make a ﬁne impression because Iknow my stuff, I dress professionally, and I’m sensitive to people.” Itdoesn’t matter if this is true at the moment; the point is to instructyourself repeatedly and with some emotion as if it is fact, and after awhile it will become so. It is up to you to create instructions for everyarea of your life and to carry them around with you everywhere: theyrepresent a new, successful you.Beyond goals to a higher aim“Prepare for the trauma of success,” Hopkins advises. He notes thepattern of people who get depressed or lose a sense of meaning oncethey have reached a major goal. You must continually create new goalsif you are to be happy. One way to retain a sense of continuous, authentic achievement,Hopkins says, is to create a larger aim beyond the current speciﬁc goalsyou are seeking to achieve. Using a great example, he writes: “Jonas Salk’s great aim wasn’t to become head of the lab so he could qualify for a pension. He set his sights on conquering polio.”If your sights are set on a job a couple of rungs above you, you will bea threat to your boss. It is much better to be a person “marked out forgreat things” whose large aims are pulling you along to their accom-plishment, gathering goodwill as you go. The added beneﬁt of thislarger view is that it helps put the small obstacles and inconveniencesof daily life into perspective. 159

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TOM HOPKINSFinal commentsAfter a short introduction by Hopkins’s hero Norman Vincent Peale,The Ofﬁcial Guide to Success begins without fanfare, almost as if youhad opened it in the middle, and ends without any grand statements.Unlike some works in the success literature, it is heavy on practicaladvice and low on motivational spiel. There is also a good reading listat the back highlighting many of the success and self-help classics ofthe 1960s and 1970s. In summary, though Hopkins’s book is over 20 years old, it is still auseful achievement manual, and if you see a copy for sale it is worthgetting. 160

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50 SUCCESS CLASSICSTom HopkinsAfter dropping out of college, Hopkins worked on building sites beforegoing into sales. His ﬁrst sales efforts earned him an average of only$42 a month. After a training seminar, he transformed his selling effortsto become a star real estate salesman, and is now one of the world’stop sales trainers. Hopkins has written 12 books, including the bestseller How toMaster the Art of Selling, which is used as a sales textbook, and YourGuide to Greatness in Sales. He lives in Arizona. 161

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1971 Born to Win “ It takes courage to be a real winner—not a winner in the sense ofbeating out someone else by always insisting on coming out on top— but a winner at responding to life. It takes courage to experience the freedom that comes with autonomy, courage to accept intimacy and directly encounter other persons, courage to take a stand in anunpopular cause, courage to choose authenticity over approval and to choose it again and again, courage to accept the responsibility foryour own choices, and, indeed, courage to be the unique person you ” really are. In a nutshell Enlarge your understanding of success to include self-knowledge and greater connection to others. You have everything in you that you need to succeed. In a similar vein Stephen R. Covey The 7 Habits of Highly Effective People (p. 90) Abraham Maslow Motivation and Personality (50SHC) Cheryl Richardson Take Time for Your Life (p. 222) Eleanor Roosevelt (by Robin Gerber) Leadership the Eleanor Roosevelt Way (p. 234) 162

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CHAPTER 26 Muriel James & Dorothy JongewardJ ames and Jongeward wrote Born to Win: Transactional Analysis for Gestalt Experiments for what they believed would be a modest aca- demic psychology audience, but more than 30 years after publica-tion it has sold over four million copies and been translated into 18languages. In their Preface to the 25th anniversary edition, the authorsexplain its success in terms of readers’ desire to understand what makespeople tick, whether it is themselves, their family members, or their co-workers. The book not only provides valuable insights into why we dowhat we do, but adds depth to the success literature in its ﬁne distinc-tions on what makes a winner.Becoming an adultBorn to Win is based on two areas of psychology: transactional analy-sis, developed by Dr. Eric Berne (author of the bestseller Games PeoplePlay), and Gestalt therapy, developed by Frederick Perls. The authorscombine them into a set of ideas that aim to create a responsible, wholeperson—a “winner.” Transactional analysis is based on the idea that everyone has three“ego states” that produce different types of behavior: the Parent, theAdult, and the Child. In the Parent state you feel a need to be criticalor to spout prejudices. In the Child state you are impulsive, excited, oract helpless. In the Adult state you are responsible, fully aware, andrational. The primary role of the Adult voice is to recognize reality and makedecisions. James and Jongeward describe the Adult as the “executive ofthe personality.” Some people may go through most of their adult lifeavoiding decisions, so when they ﬁnally do have to make one it can beterrifying. They may have to defy the internal Parent voice warningthem of risks, or the Child voice that does not want to leave behind a 163

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MURIEL JAMES & DOROTHY JONGEWARDcocoon of protectiveness. Yet we all come to these points. Winnersgrasp them and grow, losers shy away from the opportunity andshrink. Gestalt is a German word roughly meaning “an organized whole.”Gestalt therapy is about integrating the personality and developing self-awareness, so that people are able to see their unconscious patterns andbehaviors. For instance, a woman whose identity is wrapped up inbeing a “helpful Hannah” may be closing off another side of herself,the side that sometimes gets angry. You have to be aware of your polar-ities and be willing to feel things that you may not feel to be “good” or“you.” The healthy person, the winner, will be willing to express moreaspects of themselves at the appropriate time. They will be more trust-ing of their own intuition, and more willing to renew themselves men-tally and physically, in order to give more and be more.Freedom to write your own scriptTogether, transactional analysis and Gestalt therapy help a person livefully aware in the present and be responsible for their own life. Whilethis may sound rather like self-help, it is difﬁcult to imagine how youmight be considered a success if you have not achieved these twothings. While you may think that your games and posturings do littleharm, cumulatively they make a big difference to your character, creat-ing a drag on the fulﬁllment of your potential. By becoming moreobjective about how you engage with people and how they operatewith you, you can be liberated. Where before games and positions mayhave hamstrung success, now you can see them for what they are andkeep your eye on your goals. The authors discuss “life scripts,” the plans you consciously orunconsciously have for how you are going to live your life. Life is oftenlike a play, and humans will adopt roles based on what they have beentold about themselves by their family or culture. We begin life, Perlssaid, as “slaves to our parents,” but some people remain so all theirlives. Whether we like it or not, we are given a story to act out thatmay or may not suit us, and the mature human being will feel the needat some point to shake off their script like a skin and write their ownstory. Sometimes, the script we have written does not suit the culturalscript of the times and we have to take a stand, like Galileo, Martin 164

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50 SUCCESS CLASSICSLuther, or Rosa Parks, risking punishment or even death. But until wedo deﬁne our own purpose, separate to upbringing, culture, or genes,we will remain less than what we could be.Becoming a winnerJames and Jongeward describe a winner as being “credible, trust-worthy, responsive, and genuine, both as an individual and as a mem-ber of society.” As winners are not tied up in themselves, their energiescan be focused on contributing to a larger cause. When dealing withothers, they take pains to preserve their dignity and are not interestedin winning at all costs. Yet they are successful in their greater ability toproduce “win/win” situations due to a superior understanding of allthe parties involved. Winners are not afraid of intimacy, and can be themost spontaneous person in a group because they are not set in theirways. Winners set goals for themselves in order to be able to live in thepresent. We are literally “born to win,” James and Jongeward say. We haveeverything within us that we need to succeed. Although we come out ofthe womb helpless, some of us will proceed to full independence andare not afraid of playing a full part in a community, while others—“losers”—never really take full responsibility for their lives. Such indi-viduals either live in the past or the future, and, because they neverbother to crystallize their aims, do not make very good use of theirtime. Losers have learned to cope with difﬁcult childhood experiences bymanipulating or doing damage to others and denying the truth to them-selves. They try to control people, or play the victim or the aloof out-sider, in order to preserve a feeling of identity. To others, however, theseset mental patterns (“rackets”) only make them appear phony. James and Jongeward sum up the tragedy of the loser thus: “Losersare repeaters, repeating not only their own mistakes, but often those oftheir families and culture as well.” Winning people look, listen, andlearn, and are able to summon the courage to change when necessary.Final commentsWe have all had the experience of sabotaging our aims by not being incontrol of what we say and how we react. The successful person has a 165

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MURIEL JAMES & DOROTHY JONGEWARDdetermination to ﬁnd out the causes of these automatic reactions andchange them, knowing that self-awareness may prevent similar acts inthe future. “Success” may conventionally be thought of as the ability to manip-ulate other people and events. Napoleon, for instance, was reputed tohave said: “Circumstances—what are circumstances? I make circum-stances.” The question is whether you want to have this kind of suc-cess, or the sort that Abraham Maslow described as “self-actualized”;that is, the kind experienced by people who achieve things in the worldbut are also very comfortable with themselves, who have a capacity togive and contribute. Born to Win could be classed as a self-help book, but the title givesit away as primarily a work of success, different to most in the genre.While the success literature at ﬁrst glance is about external achieve-ment, in fact its principal concern is fulﬁllment of potential, seeking tobe your best self. James and Jongeward’s ideal of a whole person who has consciouslyintegrated all their “sides” and no longer needs to play games with oth-ers is surely the type of person that the world needs now. 166

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50 SUCCESS CLASSICSMuriel James & Dorothy JongewardMuriel James is a psychotherapist, with a doctorate from the Universityof California, Berkeley, where she taught for many years on the exten-sion faculty staff. She is also a licensed marriage and family counselor, atrainer in transactional analysis, and a past president of theTransactional Analysis Association. Among her 17 books are It’s Nevertoo Late to Be Happy: The Psychology of Self-Parenting, Hearts onFire: Romance and Achievement in the Lives of Great Women, and TheOK Boss. Dorothy Jongeward is a teacher, counselor, and management coun-selor specializing in organizational behavior. She also worked at theUniversity of California, Berkeley, is active in transactional analysiscircles, and is a licensed marriage and family counselor. Her otherbooks include Everybody Wins: Transactional Analysis Applied toOrganizations, and, with Muriel James, Winning Ways in Health Careand Winning with People: Group Exercises in Transactional Analysis. 167

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1998 Who Moved My Cheese?“He knew he had learned something useful about moving on from his mice friends, Sniff and Scurry. They kept life simple. They didn’toveranalyze or overcomplicate things. When the situation changed andthe cheese had been moved, they changed and moved with the cheese. He would remember that. ” “He realized that the fastest way to change is to laugh at your own folly.” In a nutshellThe ability not only to accept change but to create it is a mark of the dynamic individual. In a similar vein Susan Jeffers Feel the Fear and Do It Anyway (50SHC) J. W. Marriott Jr. The Spirit to Serve (p. 210) Ernest Shackleton (by Margot Morrell & Stephanie Capparell) Shackleton’s Way (p. 252) 168

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CHAPTER 27 Spencer JohnsonA group of old school friends is gathered for dinner and the topic of conversation gets on to change: in career, relationships, and family life. One of those present contends that change no longerbothers him after having heard “a funny little story” called “Whomoved my cheese?” In this artful way, Spencer Johnson introduces thereader to his fable on how to cope positively with change. The story involves four characters who live in a maze: the miceScurry and Sniff, and two “littlepeople,” Hem and Haw. All is goingwell because they have found a huge source of their favorite food,cheese. Hem and Haw have even moved their houses to be near it andit has becomes the center of their lives. But they do not notice that it isgetting smaller, and are devastated when they arrive at the site onemorning and ﬁnd that the cheese is gone. This is where the story splits in two. Scurry and Sniff quickly acceptthe loss of the cheese and go off into the maze in search of othersources. The littlepeople, because they have built their lives around thebig cheese, feel that they are the victims of some kind of fraud or theft.Yet this only makes things worse, as their clinging on ensures that theygo hungry. Meanwhile, the mice move on and ﬁnd new cheese.There will be other cheesesThe fable captures well that moment after you have lost a job or a rela-tionship and you believe it is the end of the world. All the good thingswere in the previous situation, and all the future holds is fear. YetJohnson’s message is that, instead of seeing change as the end of some-thing, you must learn to see it as a beginning. We have all been toldthis, but sometimes motivation is lacking. To make himself accept real-ity, Haw writes this on the wall of the maze: “If you do not change,you can become extinct.” 169

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SPENCER JOHNSON Though Johnson does not mention him, the reader is reminded ofpeople like explorer Sir Ernest Shackleton, whose “cheese” was theexpectation that his men would be the ﬁrst to cross the Antarctic onfoot. When his ship, carrying all his men, supplies, and equipment, wasslowly crushed by pack ice, instead of panicking Shackleton quicklyaccepted what had happened; without complaint he focused on whatcould be done to get his men out alive (see p. 252). Sudden change can spiral you into self-loathing or depression,because your whole sense of identity has been built around the old cir-cumstances. The surprisingly powerful advice from this story, however,is that you should not take yourself this seriously. Being willing tolaugh at your predicament can have a liberating effect, even in theworst situations. You can marvel and even be amused at how weakyour attachment had made you. In a bid to inspire himself, Haw writes another grafﬁti question onthe maze wall: “What would you do if you weren’t afraid?” He pusheson and, against all expectations, starts to enjoy the hunt for newcheese. He has no idea where he is going, but feels great just to bemoving. Haw also discovers something to help him that the mice donot have: the power to “creatively visualize” the ﬁnding of new cheese.This use of the imagination to create a sense of conﬁdence and expecta-tion becomes his savior.Feeling the fear and doing it anywayA book about dealing with change is perhaps best categorized as a self-help book, but since change is the basic fact of existence, awareness ofit must be crucial to success. The nature of change is that you neverthink it could happen to you, yet such denial stops you from taking upopportunities for new cheese earlier, or even moving your own cheesebefore it gets moved by others. It is not so much that life is short (doctors believe that many people inthe twenty-ﬁrst century will live healthily into their hundreds) but that itgoes quickly. For life not to be wasted, it demands a level of risk andadventure. If you are willing to live this way, change loses its horror. Infact, the advancing person purposely creates change because the world isnot currently how they would like it. What Hem and Haw discover is thatbreaking through your fears makes you free. Those who continually seeksecurity, ironically, are racked by the possibility that they may lose it. 170

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50 SUCCESS CLASSICSFinal commentsWhile Who Moved My Cheese? addresses the fact of change in allaspects of our lives, given how many ofﬁces the book circulates in, itwould be fair to say that its main message relates to work. Most employees are employees because they prefer the security of aset wage under the apparent protection of a large enterprise. For others,the chief beneﬁt may be that for most of the day they do not have toreally think; they “complete tasks.” But such dependence restricts per-sonal growth, in the same way that a medieval serf, while given a roofover their head on the estate, often did not stray more than a few milesbeyond it and could never expect to be a truly independent person. The value of Who Moved My Cheese? can be appreciated by boththe manager and the worker: the boss can get staff to read it to preparethemselves for organizational change or downsizing; and the employeemay ﬁnd the book a spur to understanding our much more ﬂuid work-ing world, in which, even if we choose to remain an employee, men-tally we can be in control. This may be reading too much into Spencer Johnson’s book of fewerthan 100 pages, which many people will regard as trite. Indeed, thereare more inspiring books on how to cope with change, but the lessonfrom this one is easily remembered: Do you have a “big cheese” inyour life that you believe will last forever?Spencer JohnsonJohnson has a background in medicine. He gained a BA in psychologyfrom the University of Southern California and his MD degree from theRoyal College of Surgeons. He has been Medical Director of Communications for Medtronic,which invented heart pacemakers, a research physician at the Institutefor Interdisciplinary Studies (a think tank), and a consultant to theUniversity of Southern California’s School of Medicine. With Kenneth Blanchard, Johnson co-authored the bestselling The OneMinute Manager, and has written a number of other One Minute books.He is also the creator of the children’s series ValueTales, based on the lifelessons of famous people, and the motivational gift book The PreciousPresent. Johnson started telling the “Who moved my cheese?” story over20 years ago, but it was only published at Kenneth Blanchard’s urgings.Publishers claim sales ﬁgures of over 12 million copies. 171

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1997 Rich Dad, Poor Dad“Both men were successful in their careers, working hard all their lives. Both earned substantial incomes. Yet one struggled ﬁnancially all his life. The other would become one of the richest men in Hawaii. One died leaving tens of millions of dollars to his family, charities and his church. The other left bills to be paid.” “Rule one. You must know the difference between an asset and a liability, and buy assets. If you want to be rich, this is all you need to know. ” In a nutshell Learn how money could work for you; unlearn the expectation that you must work for money. In a similar vein Warren Buffett (by Roger Lowenstein) Buffett (p. 48) George S. Clason The Richest Man in Babylon (p. 68) Benjamin Franklin The Way to Wealth (p. 108) Thomas J. Stanley The Millionaire Mind (p. 258) 172

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CHAPTER 28 Robert KiyosakiR ich Dad, Poor Dad: What the Rich Teach Their Kids about Money… That the Poor and Middle Class Do Not! became a bestseller during the dot-com boom of the late 1990s. Manyideas and businesses faded away when the bubble burst, but this bookhas kept going because it has nothing to do with market frenzies andeverything to do with our private attitudes to money. The book’s title comes from Kiyosaki’s two “dads”: his real one,who worked hard all his life as an educator in Hawaii; and a friend’sfather, who ran businesses and worked for himself. At age 9, the youngKiyosaki decided to follow the advice of the “rich dad,” and Rich Dad,Poor Dad is the culmination of those teachings.The rat raceMany people’s parents say, or at least strongly imply, that the reasonwe have to study hard at school is so that we can go on to universityand then get a secure job. This is seen as the path to ﬁnancial success,and anything else is too risky or strange to contemplate. Accepting this conventional wisdom—a wisdom based on fear—most of us end up “working for the man.” The average workplace hasa sense of quiet desperation about it. People forever complain abouttheir pay or their boss, but the alternative of quitting seems even worse.If they do go, they have another job lined up so that there is a smoothtransition from one pay packet to another. Thanks to your fear, Kiyosaki says, for the rest of your life you arelikely to be dependent on a wage and an employer. As you gain a mort-gage, consumer debt, and children, your dependence only increases,and so does your fear of trying something different. Because you can’ttake any risks with what you do have, your retirement money is placedin mutual funds that emphasize safety, and also have low rates ofreturn. And because you are working all the time to get raises to keepup with inﬂation and debt interest, you have no time to discover alter-native investments. To cap it off, Kiyosaki says, you are working from 173

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ROBERT KIYOSAKIJanuary to mid-May just to pay your taxes. If you end up with enoughto get by in your retirement, you will have done well. This is the “rat race.”Assets and liabilitiesDo you know that there is a difference between money and wealth?Money is a result of wealth or real value, and sometimes only a symbolof it. What is real is what has generated the money: a business withrevenues greater than costs, a property with rent greater than mortgageand upkeep, a creative work that earns royalties. The poor and the middle class labor under the idea that money (usu-ally a pay packet) is what matters. This equals “security.” But the richdon’t focus on pay from a job—they are more interested in somethingthat makes money, and that will do so even when they are not around.Instead of looking for jobs, they scout for assets that will be a source ofincome. As rich dad told the young Kiyosaki, “If you look for moneyand security, that’s all you’ll get.” You might get “money” but not ﬁndthe source of money. The fundamental difference between the rich and the poor and mid-dle classes is that the rich know the difference between an asset and aliability. Anything that generates money—that actually puts it in yourpocket—is an asset. Everything else you own that you think is an asset,be it your home, your car, or your expensive set of golf clubs, is mostprobably a liability. It takes money out of your pocket. You can tell someone who doesn’t know much about moneybecause they boast about how much they earn in their job. For thesavvy, job earnings are almost an irrelevance. What matters is theincome coming in from assets that don’t even need you to be aroundto generate cash.Literate and educatedWould you describe yourself as literate? Your answer may be, “Ofcourse.” But do you know how to read a balance sheet? Rich dad toldKiyosaki that accounting was a “story in numbers,” and if you couldread these stories you had a great advantage. Financial literacy was asimportant as word literacy. “Illiteracy, both in words and numbers, isthe foundation of ﬁnancial struggle,” he said. 174

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50 SUCCESS CLASSICS People frequently ask Kiyosaki, “How do I start getting rich?” Thequestioner is then disappointed to hear his response: Before making anyinvestments, educate yourself on all the options and opportunities. Themore you know, the better your decisions will be. Lack of ﬁnancialeducation teamed with the desire for quick riches leads to disaster.“Most people, in their drive to get rich, are trying to build an EmpireState Building on a 6-inch slab,” he says. What sort of knowledgefoundation do you have? One of Kiyosaki’s fascinating points is the myth that specialization isthe path to wealth. The idea goes that if you know more and moreabout something, you will be paid more for your knowledge. The dan-ger with this is that it may blind you to the business aspects of yourprofession. Most of us “become what we study.” That is, if you studycooking, you become a chef; if you study medicine, you become a doc-tor or a specialist. As you start to know more about your ﬁeld, you dobecome valuable—to whoever employs you. Kiyosaki warns that youcan spend so much time educating yourself that you forget to “mindyour own business.” Make sure that ﬁnancial knowledge is not left out of yourlearning.Personal development and building wealthThe key to controlling money is controlling your emotions. How manypeople have won the lottery or gained a big windfall, only to lose itagain within a year or two? In these situations, any deﬁciencies inﬁnancial education or self-discipline are magniﬁed. Becoming rich involves self-discipline and the ability to separate theemotions of fear and greed from a good investment decision. It mayseem strange, but self-knowledge is vital to your ﬁnancial future. Thatprosperity is intertwined with personal growth is one of the secrets ofwealth in the twenty-ﬁrst century. Kiyosaki’s poor dad was alarmed when he joined Xerox as a sales-man. Middle-class, educated people did not go into sales. But Kiyosakiwas a shy person and thought that sales training would make him lessso. He knew that successful people were not as afraid of rejection, andthat to get ahead in life you had to be good at selling, whether it wasyourself or a thing. Once he was being interviewed by a journalist, anauthor herself, who asked him how she could become more successful 175

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ROBERT KIYOSAKIat it. He told her to quit journalism for a year and take a sales job. Hehad given her the choice either to be a bestselling author or a best-writing author. She didn’t like the idea. Kiyosaki has taken many courses and seminars; one, which cost him$300, made him $1 million when he applied its ideas. If he does notstimulate his mind and learning, he knows he will stand still.Opportunities come from new ideas. Money spent on self-improvementis always a wise investment.Final commentsThis book makes you think. It makes you reﬂect not merely aboutinvestments and assets, but about your whole attitude to work and life.We have all heard it said that the stock market is driven by “fear andgreed.” Kiyosaki claims that, for most of us, fear is the key inﬂuence inour personal economic lives. We are shaped by our attitude to money,and our attitude to money is shaped by our fear. If we could changeour attitude to risk and wealth, we could begin to think, act, and livelike the rich. But ﬁrst we must become ﬁnancially intelligent. Some of the main concepts have been described here, but only some.If you are serious about long-term improvement of your ﬁnancial situa-tion, and are willing to admit that you know little, you should buyKiyosaki’s book. 176

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50 SUCCESS CLASSICSRobert KiyosakiKiyosaki grew up in Hawaii, where his father was the chief of educa-tion for the state. After college in New York he worked for Standard Oil in tankershipping, as a salesman for Xerox, and in his mid-twenties joined theMarines, going to Vietnam as an ofﬁcer and a helicopter pilot. He alsobegan to buy and sell apartments and invest in stocks, and in 1977 suc-cessfully introduced nylon and velcro “surfer wallets” to the UnitedStates. His Cashﬂow Technologies ﬁrm, based in Phoenix, Arizona, sellsbusiness educational products around the world. Kiyosaki’s otherbooks include Retire Young, Retire Rich and Rich Dad, Poor Dad 2:The Cashﬂow Quadrant. 177

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1998 The Wealth and Poverty of Nations “Round, complete, apparently serene, ineffably harmonious, theCelestial Empire purred along for hundreds of years more, impervious and imperturbable. But the world was passing it by. ” “America’s society of smallholders and relatively well-paid workerswas a seedbed of democracy and enterprise. Equality bred self-esteem,ambition, a readiness to enter and compete in the marketplace, a spirit of individualism and contentiousness. ”“If we learn anything from the history of economic development, it isthat culture makes all the difference… Yet culture, in the sense of inner ” values and attitudes that guide a population, frightens scholars. In a nutshell Genuine success is never an accident. The prosperous have a culture of progress that combines curiosity and persistent application. In a similar vein Jim Collins Good to Great (p. 80) 178

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CHAPTER 29 David S. LandesS tudents of success, if they are serious about uncovering its secrets and patterns, must be prepared for ﬁeldwork in unusual places. Our readings have taken us into the corporate world; now we willlook for the clues that success leaves in the world of nations. This com-mentary is a little longer than most, but hopefully it will repay theextra time spent reading.Medieval EuropeThe world has never been a level playing ﬁeld, David Landes notes.Climate and geography (“nature’s inequalities”) have given some coun-tries handicaps, especially in the warmer zones, while temperate landshave often had the beneﬁt of reliable rainfall, good soil, hardwoodforests, and bearable cold, not to mention the right conditions for rear-ing livestock. Such elements made for more stable societies and higherrates of economic development, and were major factors in the slow riseof Europe in the Middle Ages. A thousand years ago, no one could have predicted continentalEurope’s dominance. It was under attack from the Vikings to the north,the Moors to the south, and the Magyars to the east, and was an intel-lectual and technical laggard compared to the learning of the Arabworld and Chinese civilization. Yet Europe had something that would prove to be highly valuable: itwas heir to the classical Roman and Greek tradition, however imper-fect, of democracy and meritocracy. In contrast, the political culture ofcivilizations surrounding it was primarily despotic; Landes describesthem as “squeeze operations” that, when they needed more, did nothesitate simply to take by force from their own people. Europe had itsfair share of tyrannical rulers, but its concept of private property pro-vided motivation and encouraged enterprise. Medieval Christianity also 179

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DAVID S. LANDESput limits on the behavior of rulers, since they were subject to God andcould not abuse the commoners at will. Good Christian order meantdue process, the rule of law, and protection of property rightfullygained. All of this made Europe different. The water wheel, eyeglasses, reli-able clocks and watches, and the printed book were medieval Europeaninventions. Gutenberg had published his Bible in 1452 and by 1501there were millions of books in Europe. Meanwhile, Imperial Chinawas serene in its isolation and did not bother itself to learn anythingnew, particularly if it came from “barbarians.” Chinese rulers were“control freaks,” in today’s language, regulating everything anddemanding total obedience. Enterprise was seen as a threat. Thus, Europe overtook China by reﬁning and adapting many of itsinnovations. Unlike China, Landes says, “Europe was a learner.”Despite its feudal structure of kings and queens, nobles and peasants,medieval Europe had vibrant, self-organizing cities and regions. It wasessentially a free market, not merely of products but of ideas. Literacywas not just a luxury for the rich, Landes says: Europeans read, wrote,and published, private citizens as well as ofﬁcials. The driving forceswere the desire to keep records, but also curiosity. All nations that do well display what Landes calls “buildup”—theaccumulation of knowledge and know-how over time; and “break-through”—the reaching of thresholds after which things gather theirown momentum. He identiﬁes three factors that can account forEurope’s success and made it the place of scientiﬁc and later industrialrevolution:1 Autonomy of intellectual inquiry from church or state interference.2 Creation of a widely accepted system of proving knowledge.3 Routinization of research as an accepted activity: the “invention of invention.”Nineteenth-century BritainWhy did the Industrial Revolution happen in Britain? First of all,Landes suggests, the country had developed a social, intellectual, andpolitical infrastructure that was conducive to enterprise: a secure sys-tem of property rights, basic and higher education, the essential free-dom of the people. In these things Britons were better off than every 180

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50 SUCCESS CLASSICSother nation in Europe. Britain had another advantage in that it hadrelatively few religious constraints, as a result receiving an inﬂux ofvaluable people from the Continent such as Dutch drainers and farm-ers, Jewish merchants, and French Huguenot craftsmen. EnglishCatholics could not become members of parliament or go to university,but otherwise they were free to prosper. Despite its famous class system, it was more possible to get ahead inBritain than elsewhere in Europe, and certainly outside it. Napoleonhad dismissed England as a nation of shopkeepers, and in a way he wasright, because Britain was a country grown rich by consuming. Thingswere made for average people to buy, not solely for the rich; which is,of course, a hallmark of the modern economy. Even so, you could nothave predicted that Britain, as it entered the nineteenth century, wouldbecome the industrial powerhouse of the world. As Landes puts it,“Britain had the makings; but then Britain made itself.” There is a biggap between having the capacity or the knowledge, and acting on it.The country’s superiority was “not God-given, not happenstance, butthe result of work, ingenuity, imagination, and enterprise.”Imperial Spain and PortugalTo go back in time somewhat, while China was closing in on itself, inthe ﬁfteenth century Spain and Portugal were venturing and tradingalong the coast of Africa and into the Indies. In their lust for gold andsilver, the Spanish eventually came upon the Incas. The Inca empire wasamazingly efﬁcient, but the rulers were despots and the culture, Landessays, “deprived the ordinary person of initiative, autonomy, and per-sonality.” Essentially socialist, the king was the “great divider”: all landwas his. The empire brought together diverse peoples and established acommon language, but because its contact with the outside world waslimited (it had no written records either) it misjudged the intent of theSpanish and considered itself too powerful to be overthrown (a familiarconceit of empires). Landes calls the Spanish “kleptocrats,” much more interested in tak-ing rather than making, and often in the name of God. This combina-tion of greed and righteousness unleashed horrible cruelty andexploitation. However, it achieved its purpose: the markets opened upin the new world saw vast wealth return to it, and Madrid became therichest city in Europe. 181

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DAVID S. LANDES Why, then, did Spain decline? The money was not invested, butinstead spent on luxury and war. Because the country had not gainedits new wealth through any sort of industry, Landes opines, it was notof the mind to put it to productive use. “Wealth is not so good aswork, nor riches so good as earnings,” he says. Spain lacked the respectfor hard work that the Dutch, English, French, and Genoese had devel-oped, and had a fatal belief in its religious and social superiority. It hadto rely on “metics,” outsiders, to perform the trades and do the work,and manual labor was scorned. Landes’s view is that Spain became poor because it had too muchmoney, while others had to develop the work habits that begot moreenduring wealth. As Spain was deciding how to spend its bullion, else-where in Europe people were learning how to weave cloth, forge iron,use timber, process whale oil, and mine coal—less exciting products,but the work needed to produce them ensured that the proceeds werenot frittered away. Portugal’s success was a surprise. A nation of only one million peo-ple in the ﬁfteenth century, it had colonies from the East Indies to Indiato Brazil, famously “half the world” carved up with Spain. Yet it shotitself in the foot by adopting the Christian fundamentalism of its largerneighbor. Jews who had ﬂed to Portugal from Spain to avoid persecu-tion found themselves no better off, with pogroms leaving many deadand the rest forced to convert to Christianity. It was a dreadful mistake,as the Jews were the vital traders in the economy and were among thebest scientists. They left in droves, and Portugal, Landes says,“descended into an abyss of bigotry, fanaticism and purity of blood.”The Portuguese Inquisition followed the Spanish, burning heretics atthe stake, and it became worse when the Spanish and Portuguesecrowns were united under Philip II. Portugal lost its scientiﬁc leadership and turned inward, with alleducation and learning strictly controlled by the Church. It held on toits empire, but badly lost ground in the vital sciences of astronomy andnavigation, and became less productive in agriculture. The new ideasand technology associated with the Protestant Reformation naturallypassed it by. By 1700, Landes says, Portugal “had become a backward,weak country.” Thus the simple formula, replayed many times through history andcertainly applicable to Spain and Portugal: closed-mindedness =economic failure. 182

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50 SUCCESS CLASSICSCulture mattersLandes’s book was published the same year as Jared Diamond’s best-seller Guns, Germs and Steel, which argued that Europe’s fortunategeography was the main factor in its success. It is for the most partconvincing, but Diamond does not really explain why there is suchunevenness in prosperity in the modern world. Landes argues thatalthough geography has been very important in the development ofnations, “it would be a mistake to see geography as destiny.” Europewas indeed lucky, but “luck is only a beginning.” Some historians, Landes says, seek “a multicultural, globalist, egali-tarian history that tells something (preferably something good) abouteverybody.” In this schema, the European/American success is seen as alucky accident. But if this is true, how do we account for the industrial-ization and prosperity of Asian countries like Malaysia, Singapore, andSouth Korea since the Second World War, when most African andSouth American countries have stood still or gone backwards? Is theprogress of these countries merely accidental? Such an argument surely overlooks the efforts of the people whomade it happen—and only some of these are leaders and governmentofﬁcials. Another thesis goes: Maybe the other countries didn’t want toindustrialize and adopt western institutions; they are rightly against anyform of imperialism. There is something to this, Landes admits, how-ever wealth is wealth and poverty is poverty, whatever country you arestanding in, and many of these places have had multiple opportunitiesto improve. What, then, is the “x-factor” that distinguishes dynamic,successful nations from those that languish? Any scholar of the link between culture and economics cannotignore Max Weber’s famous essay “The Protestant Ethic and the Spiritof Capitalism.” Though it has been derided by revisionist historians,Landes says that there is much evidence for its theory that the hardwork and honesty ethic of Protestant Europe allowed for the popularaccumulation of wealth. The Protestant Reformation also went hand inhand with higher literacy and the questioning of dogma necessary forscientiﬁc advance. A culture of popular reading, learning, and question-ing—so different, for instance, to imperial China or Spain—was born.A sense of progress replaced somber respect for authority and insteadof being criminal offenses, curiosity and innovation were often the wayto wealth. Such attitudes, of course, would be instrumental in the suc-cess of the United States. 183

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DAVID S. LANDES The x-factor is therefore a culture of progress that combines curios-ity, innovation, and application. Amazingly, the quest to identify successful economic culture is tabooin some quarters because it appears to be about race and superiority.This attitude is a great pity, because The Wealth and Poverty ofNations is essentially a body of knowledge on the basic laws of success,whoever has applied them.The wealth and poverty of Islamic nationsIslamic civilization had once been Europe’s teacher, way ahead of it inlearning and culture. But from the triumph of 1187, when the Christiancrusaders were driven out of the Middle East, Landes argues, “thecourse of Islam was mostly downhill.” While Europe was separating thereligious and the secular, putting a new emphasis on facts, learning, andscientiﬁc progress, Islam was insisting on theocracy: a good state was areligious state, and those dedicated to science were not to be trusted. The legacy? With the exception of oil-rich emirates, the great major-ity of Islamic countries are economic backwaters, and most aredictatorships of one form or another. Like the Spanish conquistadors,the oil windfalls of many Arabic countries have been a handicap ratherthan a boon; developing world-competitive industrial enterprises hasnot been thought necessary. Today’s Islamic countries face another great hurdle to developmentand prosperity: women continue to be excluded from the work force.Landes argues that “the best clue to a nation’s growth and developmentpotential is the status and role of women. This is the greatest handicapof Muslim Middle Eastern societies today, the ﬂaw that most bars themfrom modernity.” The Arab world likes to blame all its woes on Israel, but Landessuggests that Middle East peace, if it ever comes, will simply furtherexpose the failings of the Islamic economic model.Final commentsAt over 500 pages, The Wealth and Poverty of Nations is much more com-plex and subtle than this commentary can convey, and there is only spacehere for some examples of Landes’s argument. The book really rewardsreading twice: once to get the broad sweep, once for the fascinating details. 184

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50 SUCCESS CLASSICS The title, of course, is inspired by Adam Smith’s The Wealth ofNations (1776), but Landes decided it was important to look atpoverty as well as wealth, because failure can be the best teacher. Didhe ﬁnd any similarities between unsuccessful nations? He admits he isnot politically correct in his answer, that it is nearly always a simplefailure of application. Of Latin America, for example, he notes thateven after 200 years of political independence it is dogged by misman-agement and corruption, kept aﬂoat by borrowing and manipulation ofmonetary controls. Every ex-colony has had to realize that indepen-dence does not guarantee happiness and prosperity; industries must beslowly developed, people properly educated, and institutions built. Some characteristics of prosperous countries are thus a belief inprogress; openness to outside inﬂuences; a desire to produce ratherthan consume; a high value put on learning; emphasis on establishingthe facts; and government by the people, for the people. In contrast,fundamentalist quests for purity are diseases that quickly kill off eco-nomic health. The optimistic, hardworking countries will always have the edge,but it is the qualities of individuals that make them this way, and withenough individuals thinking the same way you have a culture. In thewealth or poverty, success or failure of nations, culture matters. In thesuccess or failure of individuals, “culture” is character—honesty, perse-verance, diligence, vision, self-education, living by results. At the end of the book Landes admits that this recipe of self-empowerment sounds like a cliché. Yet at heart, every person, nation,and company knows it is true. Natural aptitudes are always an advan-tage, but no one is ever born successful, just as nations are not born rich.David S. LandesOne of the most distinguished postwar American historians, Landeswas born in 1924 and educated at City College, New York, andHarvard University. He is professor emeritus of history and economicsat Harvard University, and has held positions as a professor of historyor economics at a number of leading universities in the US and Europe. His other books include Bankers and Pashas, Revolution in Time:Clocks and the Making of the Modern World, and The UnboundPrometheus. 185

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1992Lincoln on Leadership “It was Abraham Lincoln who, during the most difﬁcult period in the nation’s history, almost single-handedly preserved the American concept of government. Had he not been the leader that he was,secession in 1860 could have led to further partitioning of the country into an inﬁnite number of smaller, separate pieces, some retaining slavery, some not. He accomplished his task with a naturalness andintuitiveness in leading people that was at least a century ahead of his time.”“[We] here highly resolve that these dead shall not have died in vain— that this nation, under God, shall have a new birth of freedom—andthat government of the people, by the people, for the people, shall not perish from the earth. ” Lincoln, Gettysburg Address, 1863 In a nutshell Above all, leaders seek results. Many have wishes, but effective leaders act. In a similar vein Nelson Mandela Long Walk to Freedom (p. 198) Eleanor Roosevelt (by Robin Gerber) Leadership the Eleanor Roosevelt Way (p. 234) Ernest Shackleton (by Margot Morrell & Stephanie Capparell) Shackleton’s Way (p. 252) 186

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CHAPTER 30 Donald T. PhillipsT here are now many books that extract leadership lessons from the lives of famous people, but this was one of the ﬁrst. Phillips had the initial inspiration for it when, in the middle of a week-longmanagement seminar, he realized that the ideas being presented hadbeen enacted in real life by Abraham Lincoln. He was then amazed todiscover that amid the thousands of articles and books written onLincoln, there was very little on his leadership style. It seemed thatLincoln’s very genius as a leader and his success as president had madehim into a myth, obscuring the fact that his life before becomingpresident was unspectacular, and that whatever he knew about leadinghe had, like everyone else, learned.The unlikeliest heroLincoln was born in a log cabin in what was then frontier America. Hismother died when he was young and his father remarried. Fortunately,his stepmother encouraged him to read. With a minimal education hewent on to try his hand at a number of jobs, including clerk, storeowner, surveyor, and postmaster, before becoming a lawyer. Thoughnot particularly successful in his early political career, his views on slav-ery in the Lincoln–Douglas debates brought him wide attention, and atthe 1860 Republican convention he won the party’s nomination for thepresidency. Lincoln’s election to the White House was not exactly an accident,but he was greatly helped by the fact that the Democrats were splitbetween North and South. Within the Republican party, Lincoln hadonly been selected over William Seward because he was considered themore middle-of-the-road candidate. By the time he was sworn in, seven states had broken away from theUnion on the slavery issue, yet the outgoing president, Buchanan, hadgiven up trying to control the situation. Congress, though the Unionarmy was in disarray and underfunded, was looking to cut its costs,and only Lincoln seemed to see that action had to be taken if the Union 187

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ABRAHAM LINCOLNwas to survive and be rid of slavery. Decisive and ceaselessly energetic,his determination surprised everyone. He made William Seward, hisRepublican rival, secretary of state, and Edwin Stanton his secretary ofwar. While neither man thought much of him, within a relatively shortspace of time both would change their minds. Phillips presents us with the amazing fact that Lincoln had neverheld an executive position before becoming president, yet he proceededto a total reorganization of the US military, and a constitutionally ques-tionable expansion of the powers of the presidency itself. Let us look in more detail at some of the points that Phillips makesabout Lincoln as president.The active leader❖ Lincoln knew that the White House was an ivory tower and spent most of his time out of the ofﬁce: visiting troops in the ﬁeld, visiting his staff in their homes, visiting the wounded in hospital, holding cabinet meetings wherever it was convenient. He prized informality and human contact.❖ Lincoln employed what is now known as MBWA—management by wandering around. He sacked one general for isolating himself from his men, and believed that the best information was found at ﬁrst hand. He took charge of battle situations himself when necessary and remains one of the only US presidents literally to come under ﬁre.❖ The most accessible US president in history, Lincoln rarely turned anyone away who came to see him, whether top general or lowly farmer. This, and his great ability as a listener, helped build trust in him as a leader.The scholar of human nature❖ Lincoln had a “penetrating comprehension of human nature,” Phillips writes, which allowed him to take the broad and compas- sionate view. He was able to forgive mistakes easily, and was notori- ous for his many pardons, particularly of war deserters, who normally would have hanged. Phillips believes that this compassion evoked trust and loyalty, which in a time of war are absolutely cru- cial to success. 188

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50 SUCCESS CLASSICS❖ The president used persuasion, not coercion, to achieve his ends, and was fond of the maxim “A drop of honey catches more ﬂies than a gallon of gall.” Only if you could convince someone that you were their friend could you really inﬂuence them. Despite periods of depression, Lincoln never underestimated the power of a pleasing personality, and was always ready to compliment or encourage. He rarely lost his temper.❖ In terms of managing his own generals, Lincoln was not afraid to let them know what he thought were their bad points, yet he also gave them free rein to perform. Many did not meet his expectations and were given lesser responsibilities, but when the man did come along who could act in the way he wanted—Ulysses S. Grant—he placed the entire US army under his command.Honest and compassionate Abe❖ The nickname “Honest Abe” was accurate. Lincoln’s reputation for honesty made people trust him and increased his ability to lead. Top leaders are expected to “do the right thing” and he had this attribute in abundance. “Values motivate,” Phillips notes.❖ Lincoln sought objectivity: “I shall do nothing in malice. What I deal with is too vast for malicious dealing.” He did not have time for retribution, pettiness, or blame. Although he frequently wrote angry letters to his generals who were not doing enough to defeat the Confederate army, he never sent them. To do so would have made enemies, and he was always keen to give people another chance. While some perceived this as weakness, his willingness to overlook mistakes and hold his tongue endeared Lincoln to his staff.❖ When the Civil War ended in 1865, Lincoln did not seek revenge on the South, instead offering goodwill. In his Second Inaugural Address, he spoke the famous words: “With malice towards none; with charity towards all… let us strive on to ﬁnish the work we are in, to bind up the nation’s wounds.” This large view of things helped the South to get on with rebuilding the country without fear, minimizing both guilt and blame. 189

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ABRAHAM LINCOLNThe great communicator❖ Lincoln was a brilliant writer but also a remarkable orator. With his high-pitched voice, strange gangly frame, and ill-tailored clothes he did not make good ﬁrst impressions, but by the end of a talk his audiences were usually rapt. He enjoyed injecting anecdotes, sto- ries, and jokes into his speeches because he preferred them not to be too “high-minded.” He wanted them to appeal to the average person.❖ The same man, with very little schooling, was able to write the almost poetic Gettysburg Address, not to mention thousands of superbly crafted letters. Lincoln’s lesson is that every investment we make in increasing our communication skills pays off.The unmoveable❖ Lincoln was a master of overcoming setbacks and defeats, because he was supported by the belief that he had right on his side. His assertiveness and refusal to buckle under pressure made him the tar- get of unjust criticism, slander, and abuse, and until he could demonstrate himself in ofﬁce he was rejected out of hand as a hick country lawyer. Yet he did not often attack his detractors, and in fact accepted criticism as part of the job, only worrying when the criticism might affect perception of the Union war effort. He found release in humor and storytelling, both to amuse others and to get him through the dark years of the war.Final commentsWhat is remarkable about Lincoln, Phillips notes, is that he actually didwhat he said he would in terms of preserving the Union and abolishingslavery. This wasn’t good luck. He had goals for his time in ofﬁce andhe accomplished them relatively quickly (within four years). Thoughalways ready to admit when he was wrong, he was massively conﬁdentabout the stance he had taken, and with this certainty of purpose camedecisiveness. Lincoln on Leadership is worth reading to appreciate the nuances ofLincoln’s character and for the points that end each chapter, providingan easy reminder of his leadership lessons. It is an inspiring read,because Lincoln himself inspired. He fulﬁlled the main criterion for a 190

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50 SUCCESS CLASSICSgreat leader that James McGregor Burns discussed in his seminal workLeadership: a person who can “lift others into their better selves.” Next time you ﬁnd yourself in a quandary about how to deal withsomeone or how to cope with a crisis, ask yourself, “What wouldLincoln have done?”Donald T. PhillipsPhillips has 20 years of business experience and now speaks widely onleadership. He is currently the mayor of Fairview, Texas. His other books include The Founding Fathers on Leadership,Martin Luther King Jr. on Leadership, and On the Brink: The Life andLeadership of Norman Brinker. 191

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2003 The Power of Full Engagement“Energy, not time, is the fundamental currency of high performance.”“ The number of hours in a day is ﬁxed, but the quantity and quality ofenergy available to us is not. It is our most precious resource. The more we take responsibility for the energy we bring to the world, the more empowered and productive we become. The more we blame others orexternal circumstances, the more negative and compromised our energy ” is likely to be. “Without time for recovery, our lives become a blur of doing unbalanced by much opportunity for being.” In a nutshellRealize that you can’t manage time; instead, adopt better ways to use your physical, mental, emotional, and spiritual energy. In a similar vein Stephen R. Covey The 7 Habits of Highly Effective People (p. 90) W. Timothy Gallwey The Inner Game of Tennis (p. 114) Cheryl Richardson Take Time for Your Life (p. 222) 192

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CHAPTER 31 Jim Loehr & Tony SchwartzJ im Loehr spent thousands of hours watching videos of professional tennis games, trying to discover what the top players did that sepa- rated them from the rest. He found nothing. Then he started tonotice what players did between points. The top players generally had amuch better way of relaxing after each point in order to prepare for thenext one. In these tiny slots of 16–20 seconds, some were able to lowertheir heart rate, relax their mind, and refocus. In a game going into twoor three hours, these mini recovery rituals mattered. The player withoutthem became fatigued, then lost concentration and points. The “x-factor” in success that Loehr and his partner Tony Schwartzhad been looking for, alongside the more obvious talent and skill, wasthe management of energy. They became unusual in the sports trainingworld for paying no attention to their clients’ technical or tacticalskills: from Pete Sampras to Monica Seles, these were clearly in abun-dance. Talent and skill may have got them to the top, but it was focus,purpose, and resilience—that is, control of physical and emotionalenergy—that kept them there.Downtime“It is a very good plan every now and then to go away and have a littlerelaxation… When you come back to the work your judgement will be surer, since to remain constantly at work will cause you to lose the power of judgement.”Who wrote this? Not Loehr and Schwartz, they are simply quotingfrom A Treatise on Painting… by Leonardo da Vinci. Like WinstonChurchill, da Vinci was keen on strategic napping, which rechargedhim and let him go back to work refreshed. When he was painting TheLast Supper, to the dismay of his clients he often appeared to spend 193

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JIM LOEHR & TONY SCHWARTZhours just daydreaming. He wrote: “The greatest geniuses sometimesaccomplish more when they work less.” Our culture still revolves around the idea of “linear” energy, theability to stay focused for hours or days on end. Loehr and Schwartznote, “Unlike most addictions, workaholism is often admired, encour-aged and materially well-rewarded.” Yet look at the costs. In researchstudies, those who describe themselves as workaholics are also muchmore likely to drink more than the average, have stress-related illness,and get divorced. The Japanese have a word, karoshi, meaning “death from over-work.” Most industrial accidents happen when people have been work-ing for too long without a break. When space shuttle Challenger blewup in 1986, NASA ofﬁcials’ decision to go ahead with the launch cameafter 20 hours of continuous work. Would they have made the samedecision, ask Loehr and Schwartz, after a good night’s sleep? And let’snot forget all the hospital mistakes that can partly be attributed to theinsane hours that doctors, particularly junior doctors, are expected towork. In short, our culture gloriﬁes “putting in the hours,” even whenit makes no sense and risks health and lives. You will know many people for whom work is their sole interest.Maybe you are one of them. If so, you also need to get your headaround the fact that so-called downtime—seemingly doing little ornothing—can be much more valuable to your overall creativity andlong-term productivity than staying at work. Loehr and Schwartz men-tion a study that found out where people are when they get their bestideas. Most said the garden, the gym, watching a movie, or similarplaces; they were not working. In our 24/7 world, the idea of a day inthe week when we make ourselves do nothing looks very old-fashioned—we used to call it the sabbath—but for many people itwould make great sense. As Loehr and Schwartz put it, “Intermittentlydisengaging is what allows us to passionately reengage.”Developing mental and emotional musclesThe natural pattern of action and recovery is called “oscillation.” Wefrequently try to override this pattern at work by relying on stress hor-mones, caffeine, and so on. However, without a program of naturalrecovery in place, the body will come back at us through a long-termweakening of physical health and a rise in impatience, anger, self- 194

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50 SUCCESS CLASSICSabsorption, and insensitivity to others. Without rest and recovery, thebody has no chance to rid itself of toxins, physical and mental. To a degree even they did not expect, Loehr and Schwartz foundthat body and mind are one. The reason exercise is so important is thatit pumps blood and oxygen to the brain, allowing you literally to thinkbetter and put worries into perspective. You do not need to be told thisif you exercise regularly. An improved heart rate and a general feelingof well-being make you much less irritated by small things, and youfeel energized to refocus on your larger goals. You can develop your emotional, mental, and spiritual muscles—such as empathy, creativity, conﬁdence, patience, and kindness—in thesame way that you build a bicep or tricep. Emotional ﬂexibility is theability to handle a range of emotions, even to choose what you willfeel, rather than having a small bag of responses that make you rigidand defensive. Emotional resilience, a major factor in success, is yourcapacity to come back from adversity. Loehr and Schwartz compare John McEnroe and Jimmy Connors.When we think of McEnroe emotional outbursts at umpires come tomind, and it is natural to assume that being so “pumped up” was abig part of his success. But in fact in his autobiography McEnroe saysthat his outbursts were a handicap that wasted his energy and con-tributed to some landmark losses. Connors, although perhaps a lessertalent, played for six years longer than his rival and remained success-ful. Not least, his greater emotional control meant that he also enjoyedhimself.Full engagement through purposeThe Power of Full Engagement cites some interesting ﬁgures from 2001Gallup data: only 30 percent of American workers are fully engaged intheir work, 55 percent are not engaged, and the rest are “actively dis-engaged,” meaning that they are unhappy and complain about it toothers. The longer an employee stays in a particular organization, themore disengaged they are likely to become. Jobs come and go, but what is your real contribution to society,what is your purpose? If you can align your working life with yourdeepest desires and talents, you will not have to worry about motiva-tion. Getting to grips with your purpose is not going to happen at arate of knots, however. You will need quiet, uninterrupted time and 195

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JIM LOEHR & TONY SCHWARTZwillingness to reﬂect and reorganize your life. Think of it as an invest-ment, Loehr and Schwartz suggest. Spiritual energy, or purpose, enables you to manage your time muchbetter because you know your priorities. There is no need to try toplease others with your answers because you live from a basis of inter-nal truth. The authors warn: “Like all of our ‘muscles,’ self-awareness withers from disuse anddeepens when we push past our resistance to more of the truth. We fall asleep to aspects of ourselves each and every day.”People who are very clear on who they are and their mission in lifetend to be bursting with energy, yet they are also aware of the need fortimes of quiet and reﬂection to renew themselves.Final commentsMany of our choices give us a quick burst of energy or comfort (eatingjunk food, getting angry at someone, putting out ﬁres at work) but taketheir toll in the long term: our health deteriorates, people start avoidingus, issues at work requiring deep thought are not dealt with. If youwant to be a real leader, Loehr and Schwartz say, you must become amaster of your own physical, mental, emotional, and spiritual energies. The Power of Full Engagement is basically a coaching book for any-one who has lost their “edge” and can’t work out why. Written afterthe 9/11 terrorist attack on the World Trade Center in New York, ithighlights people who have climbed back emotionally after theirordeals, and it is these and other vignettes that give the book its life.Maybe it is too soon to label it a classic, but the simple idea of manag-ing your energy rather than your time seems startlingly original, andmay be of great signiﬁcance for your success. 196

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50 SUCCESS CLASSICSJim Loehr & Tony SchwartzThe authors are respectively CEO and president of LGE PerformanceSystems, founded in 1993, which runs the Corporate Athlete trainingsystem. Loehr has worked in performance psychology for many years andtrained police departments, SWAT teams, and emergency service work-ers as well as athletes. Along with numerous scientiﬁc articles, his 12books include Stress for Success and Toughness Training for Sports. Fora decade he was a monthly columnist for World Tennis and Tennismagazines. Schwartz helped to develop content and methodology for LGE’straining programs. He co-authored Donald Trump’s bestselling The Artof the Deal (1989) and Work in Progress (1998) by Disney bossMichael Eisner, and has reported for the New York Times, edited forNewsweek, and contributed to numerous magazines. The Power of Full Engagement is published in the UK as On Form. 197

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1994Long Walk to Freedom “I never thought that a life sentence truly meant life and that I woulddie behind bars. Perhaps I was denying this prospect because it was too unpleasant to contemplate. But I always knew that someday I would once again feel the grass under my feet and walk in the sunshine as a free man. ” “I am fundamentally an optimist. Whether that comes from nature or nurture, I cannot say. Part of being optimistic is keeping one’s headpointed towards the sun, one’s feet moving forward. There were many dark moments when my faith in humanity was sorely tested, but I would not and could not give myself up to despair. ” In a nutshell Success is most likely when it becomes a necessity. In a similar vein Stephen R. Covey The 7 Habits of Highly Effective People (p. 90) Viktor Frankl Man’s Search For Meaning (50SHC) Ernest Shackleton (by Margot Morrell & Stephanie Capparell) Shackleton’s Way (p. 252) 198

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CHAPTER 32 Nelson MandelaN elson Mandela grew up in a traditional village in the Transkei region of South Africa, hundreds of miles from either Johannesburg or Cape Town. A member of the Thembu tribethat forms part of the Xhosa nation, his father was both a tribal chief-tain and the chief adviser to the Thembu king, and Mandela wasgroomed to follow in his father’s footsteps. The name given to him atbirth was, prophetically, Rolihlahla. In his native Xhosa, the colloquialmeaning of the name is “troublemaker.” The ﬁrst member of his family to go to school, Mandela was given theEnglish name Nelson. He recalls an idyllic Transkei childhood of animalherding, stick ﬁghting, and storytelling, but after his father died he wasmoved to the Thembu capital to live under the wing of the tribal chief. In his early years, Mandela says, he saw the white man more as abenefactor than an oppressor, and was enamored of British culture andits political system. But he came to realize that the Xhosa was a con-quered people, with most of the men having to slave away in the goldmines for minuscule pay or work on white-owned farms. Mandelaobserved: “No matter how high a black man advanced, he was stillconsidered inferior to the lowest white man.”Early lessons, lifelong contactsAs a student, Mandela was introverted and not brilliant, but workedhard. He was placed in an English-style secondary college for blacks,met young people from other tribal backgrounds, and began to get asense of being “African” as opposed to simply Thembu or Xhosa. At Fort Hare University College, run by missionaries and with blackprofessors, he studied English, anthropology, politics, native administra-tion, and Roman Dutch law. At this time his ambition was to be a low-level civil servant, a clerk or interpreter in the Native Affairs Department. For a black South African, Mandela’s education was privileged, andhe believed that a BA would be his ticket to prosperity. Only later did herealize that there were many people without degrees who were smarter 199

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NELSON MANDELAthan him, and that character was the greater ingredient in Competing incross-country running in college taught him that he could make up for alack in natural ability by hard training. In his studies, he observed: “I sawmany young men who had great natural ability, but who did not have theself-discipline and patience to build on their endowment.” Back home from college for a break, Mandela found an arranged mar-riage waiting for him on which he was not keen, and ﬂed to Johannesburg.After trying to get work in the ofﬁces of a gold mine, he eventually foundan articled clerkship in a liberal Jewish law ﬁrm. He was paid a pittanceand often had to walk miles into the center of Johannesburg from histownship. Slowly he began to get involved in politics and the AfricanNational Congress (ANC), but for a number of years was more observerthan activist. It was at this time that he met ANC stalwart Walter Sisulu, areal estate agent when blacks were still allowed to own some property. A black lawyer was a great novelty, and when Mandela enrolled inthe University of Witwatersrand for a Bachelor of Law degree in 1943he was the only African student in the faculty. His discomfort was less-ened by a circle of supportive whites and Indians, who would laterprove to be important in the struggle for black freedom.Beginning the fightOn a platform of “the nigger in his place,” in 1948 the Nationalistparty came to power in South Africa. Though the idea of apartheid(“apartness”) had been around for centuries, the Afrikaner Nationalistsentrenched it in hundreds of oppressive laws designed to create a brutalhierarchy: whites at the top, blacks at the bottom, and Indians and col-oreds in the middle. Afrikaans, the language of the original Dutchfarmer-settlers, took over from English as an ofﬁcial language. Withrace as the basis for South African society, elaborate tests were requiredthat often broke up families. “Where one was allowed to live and workcould rest on such absurd distinctions as the curl of one’s hair or thesize of one’s lips,” Mandela notes. The deﬁance campaigns that the ANC organized, involving stay-at-homes and gatherings to protest against new laws, only made the newgovernment more iron-willed in keeping black people downtrodden.School education was scaled down, whole towns were razed to make wayfor white housing, and the pass system made it extremely difﬁcult for non-white people to move freely. The 1950 Suppression of Communism Act 200

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50 SUCCESS CLASSICSwas only partly related to curbing communism; its real purpose was toallow the government to imprison anyone on a trumped-up charge. Despite this harsher climate, in 1952 Mandela and Oliver Tamboestablished the ﬁrst black law ofﬁce in South Africa. It was inundatedwith cases from the ﬁrst day and was highly successful. In those days,Mandela admits he was a “hotheaded revolutionary” without a greatdeal of discipline, and that he enjoyed wearing smart suits and drivingaround Johannesburg in a large American car. He even bought land inthe Transkei with a view to moving back home. Fate had other ideas. At 35 Mandela was banned from any involve-ment with the ANC, which meant that any work he did for the organi-zation would have to be secret and risk long-term imprisonment. Hisroles as freedom ﬁghter and family man were never compatible, andfrom this point on he would live with the constant anguish of havingmade the people he loved secondary to the larger struggle for freedom.Criminal and outlawIn the famous 1958–61 Treason Trial, the Nationalist governmentcharged Mandela and others with trying to overthrow the state.Though the prosecution lacked real evidence, the trial dragged on foryears. By this time Mandela’s marriage had collapsed, and the timerequired to be away from the law practice saw that, too, fall apart. When the members of the group were acquitted, the authorities’embarrassment was so great that it made them even more determinedto quell insurrection. In 1960, 70 black demonstrators were killed atSharpeville, a township south of Johannesburg, when they peacefullysurrounded a police station. Many were shot in the back trying to ﬂeethe gunﬁre. South Africa came under a State of Emergency in which therights of blacks were further curtailed. Mandela knew that he would soon be rearrested for something, so hedecided to go underground, moving from place to place with the help ofdisguises. He grew his hair and wore the blue overalls of the worker and,because he had a car, pretended to be driving it for his baas (white mas-ter). During this outlaw existence, when there was a warrant for hisarrest, the newspapers began calling Mandela “The Black Pimpernel.” Forseveral months he actually left South Africa to visit various African statesincluding Sudan, Haile Selassie’s Ethiopia, and Egypt to seek support forthe ANC’s cause, solicit donations, and learn about guerrilla warfare. The 201

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NELSON MANDELAtrip was the ﬁrst time Mandela had experienced freedom and had seenblacks either running their own states or being treated as equals, and itonly inspired him further. However, back in South Africa he let his guarddown, and in 1962 he was captured on a road leading into Cape Town.Captive revolutionaryAt his trial, Mandela tried to put the onus of guilt on to the government,and wore traditional clothing to symbolize that he did not recognize thewhite legal system and the charges it was making against him. Hereceived a ﬁve-year sentence without parole. However, much worse wasto come. As the ANC’s philosophy of nonviolence was clearly not work-ing, Mandela had founded a covert military afﬁliate that began a sabo-tage campaign on government property. In 1964 he was charged withsabotage and conspiracy, along with a number of other ANC members. The death sentence was expected, and in his address to the courtMandela said that he was prepared to die for the cause of justice. Per-haps because of international pressure, however, the men “only”received life sentences. This seemed like a great victory. Mandela would spend the next 18 years in the notorious RobbenIsland prison. The ﬁrst decade involved hard manual labor, terriblefood, and a climate of fear and abuse. However, the political prisonerswere kept together and so could continue their discussions. Denied vir-tually all outside contact, the acquisition of a newspaper was prizedalmost above food. The men’s political struggle was reduced to withinthe prison walls, and they had to ﬁght for any kind of improvement intheir daily life. For the slightest infraction they could be thrown into asolitary conﬁnement cell for days on a diet of rice water. Mandelawrites: “It is said that no one truly knows a nation until one has beeninside its jails. A nation should not be judged by how it treats its high-est citizens, but its lowest ones—and South Africa treated its impris-oned African citizens like animals.” The years on Robben Island made Mandela a virtual stranger to hisfamily, and he often wondered whether the struggle was worth it. Hismother died while he was there and he was not allowed to attend thefuneral. On the rare occasion that he was allowed family visitors, hewas given only half an hour with them. Because of the restrictions onher movements, he did not see his second wife Winnie Mandela for twowhole years, and his children were not allowed to visit before the age 202

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50 SUCCESS CLASSICSof 15. The nadir of Mandela’s time on the island came when hereceived news that his 25-year-old son had been killed in a car accident. In the latter years of his imprisonment, as his legend grew, Mandelawas moved to mainland prisons and received special treatment, endingup with his own house and cook, and was able to receive visitors. He had been seeking dialog with the government for some time, andafter 75 years of bitter antipathy white politicians began to listen to hisideas for a fully democratic South Africa. They knew that history wasnot on their side, and the country was becoming explosive. Amid great euphoria, Mandela was released in 1990, having spent272 years in jail. Four years later, after the country’s ﬁrst nonracialelections, he was elected President of South Africa. In the meantimethere had been much bloodshed, but the worst years were behind thecountry.Final commentsLong Walk to Freedom is simply but skillfully written, and even at 750pages you feel that it only skims the surface of one of the twentiethcentury’s great lives. This commentary, in turn, only highlights a fewpoints; reading the book cannot be more highly recommended. Today we think of Mandela as a gray-haired statesman, a legendaryﬁgure, but his memoirs allow us to get behind the image. We see thathe was a normal man who was willing to react positively to extra-ordinarily bad circumstances. He got through his ordeal because hewas an optimist, and could therefore inspire himself as much as others.The key to his success as a leader was the sense of inevitability hecreated—the power of his belief. The message he gave out that thingswould change was so great that even prison warders came around tohis way of thinking. The end result was a new nation based on fairnessand dignity in the place of a rotten police state. Though he received a privileged education and was groomed forleadership, neither of these things was a cause of his future success as aleader. As the state gave him less and less to work with, he parlayedeven these meager opportunities into positive action. In a tight situation or a long struggle for recognition or success, wewould do well to remember Mandela, and to have even an ounce of hismental discipline and bravery. 203

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1894 Pushing to the Front “The world does not demand that you be a lawyer, minister, doctor,farmer, scientist, or merchant; it does not dictate what you shall do, but it does require that you be a master in whatever you undertake. ”“As the sculptor thinks only of the angel imprisoned in the marble block, so Nature cares only for the man or woman shut up in the human being… Nature will chip and pound us remorselessly to bring out our ” possibilities. “The slow penny is surer than the quick dollar. The slow trotter will out-travel the ﬂeet racer. Genius darts, ﬂutters and tires; but perseverance wears and wins. ” “Don’t wait for extraordinary opportunities. Seize common occasions and make them great.” In a nutshell There are few things that cannot be achieved by sheer determination and effort. In a similar vein Horatio Alger Ragged Dick (p. 12) Edward Bok The Americanization of Edward Bok (p. 36) Napoleon Hill Think and Grow Rich (p. 144) Samuel Smiles Self-Help (50SHC) Brian Tracy Maximum Achievement (p. 264) 204

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CHAPTER 33 Orison Swett MardenI n their Foreword, the publishers of this work boast, “It is doubtful whether any other book, outside of the Bible, has been the turning- point in more lives.” The original Pushing to the Front, or Successunder Difﬁculties was published in 1894, but was revised andexpanded into the two-volume work of 1911. At 70 chapters and closeto 900 pages, in its size and scope it could safely claim to be an ency-clopedia of success, and has arguably not been overtaken. Though Horatio Alger inspired many with his poor-boy-makes-goodstories, Orison Swett Marden must be considered the real founder ofthe American success movement. Pushing to the Front, which was hisﬁrst book, was inspired by Samuel Smiles’s Self-Help, the seminal self-improvement manual, which Marden had discovered in an attic.Though twice the size of Smiles’s tome, it is written in a similarlyenjoyable style and sticks to the theme of “how men and women haveseized common occasions and made them great.” Where it differs fromSmiles’s work is that it has references to successful women of the daysuch as Jane Addams and Julia Ward Howe, and Marden refers to thedawning twentieth century as “the century of the woman,” bringingunparalleled opportunities for young girls. In the second volume, heincludes a farsighted chapter on the need for women to express them-selves beyond the role of housewife and mother. Marden also shows hisunderstanding of the new world his readers were entering by his praiseof black Americans such as Frederick Douglass. Pushing to the Front distinguished itself from some of the worst atti-tudes of its times by its strenuous theme of abhorrence of those livingonly for the dollar. It book inspires the reader not to make the mostmoney, but to pursue a career that excites, enriches intellectually, anduses talents to the full.Overcoming difficultiesMost persistent among the book’s themes is that character is built byadversity, or as Winston Churchill put it, “Kites rise highest against the 205

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ORISON SWETT MARDENwind—not with it.” Marden points out that “poverty and hardship haverocked the cradle of the giants of the race,” drawing to our attentionsuch people as:❖ Horace Greeley (1811–72), who showed up in New York as a pen- niless printer and became founder of the weekly New Yorker and the daily New York Tribune, which had a huge impact on American public opinion.❖ The writer and champion of the poor William Cobbett (1763–1835), a farm boy who taught himself to read and write and became a major English political ﬁgure.❖ Elihu Burritt (1810–79), the Connecticut man known as the “Learned Blacksmith,” who during spare moments at the forge began a program of self-study that enabled him to become a linguist, writer, and mathematician. A typical entry in his diary is: “Tuesday, June 19, 60 lines Hebrew, 30 Danish, 10 lines Bohemian, 9 lines Polish, 15 names of stars, 10 hours forging.”❖ Michael Faraday (1791–1867), arguably the greatest experimental physicist, who as a boy in London lived above a stable and made money through lending out newspapers at a penny a piece. Apprenticed to a bookbinder, he read articles on electricity from the Encyclopaedia Brittanica and begun his own experiments. The scien- tist Sir Humphrey Davy made Faraday his assistant, enabling him to meet some of the great scientiﬁc minds of his day.❖ Frederick Douglass (1817–95), the slave-cum-abolitionist “who started in life with less than nothing for he did not own his own body.” Plantation rules forbade slaves to learn reading or writing, but he somehow learned the alphabet from scraps of paper and medicine bottle labels. Later, friends literally bought his freedom (at a cost of $750).To Marden, necessity is the mother not simply of invention, but of suc-cess. “Failure often leans a man to success by arousing his latentenergy, by ﬁring a dormant purpose, by awakening powers which weresleeping.” Prison, he notes, has often been the rouser of this latentenergy. Sir Walter Raleigh wrote The History of the World during his13-year imprisonment; Luther made his translation of the Bible whilebehind bars; and Dante wrote while exiled. Cervantes took up his penwhile in jail in Madrid, producing Don Quixote. In more recent times, 206

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50 SUCCESS CLASSICSwe think of Nelson Mandela on Robben Island, writing his memorableautobiography and planning a new South Africa (see p. 198). Jewish people have been oppressed through history, Mardenobserves, yet they have produced some of the ﬁnest music and writingand made cities thrive. It took the plague and the great ﬁre to destroyLondon before it rose up as a ﬁne city. Marden recalls Samuel Smiles’s simple words on the matter: “Ifthere were no difﬁculties there would be no success.” Burdens make ustry harder to lift them and we get stronger as a result, while the personwho has none need do little.Nerve, pluck, persistence, and gritMarden recalls that Ulysses S. Grant lost an early battle in the CivilWar at Shiloh. Every newspaper called for his removal, but Lincoln’sﬁnal response was, “I can’t spare this man, he ﬁghts.” What Lincolnsaw in Grant—a resolve never to let go, “grit”—is what later made himthe hero of the war. Lincoln himself was asked what he would do if therebellion took hold and he could not suppress it, and he replied, “Oh,there is no alternative but to keep pegging away.” Both men were notmoved by public clamor; they knew what their task was, and did it. Marden notes that Gibbon’s Decline and Fall of the Roman Empiretook twenty years to write, Webster spent 36 years on his dictionary,and Stephenson labored for 15 years to perfect his locomotive. Harveyworked for 8 years before publishing his work on the circulation of theblood, then had to wait 25 before the theory was ﬁnally accepted. CyrusField spent a decade of heartbreaking setbacks before the transatlanticcable was laid; everyone lost faith in the idea except him, but hebelieved that instantaneous communication across oceans was a neces-sity, not an option. The great violinist Gherardini was asked how long ittook him to learn to play. His answer: 12 hours a day for 20 years. Many know the story of Carlyle’s History of the French Revolution:the manuscript was lent to a friend, who left it lying on his ﬂoor. A maidtook it as kindling for the ﬁre and it went up in ﬂames in a minute ortwo. Though this was a great blow, Carlyle went back to his books andspent several more months rewriting the work, better than the original.And the “ease and grace” of Rousseau’s style were obtained, Mardensays, “only by ceaseless inquietude, by endless blotches and erasures.”Thoreau’s ﬁrst book, A Week on the Concord and Merrimack Rivers, 207

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ORISON SWETT MARDENsold so poorly that the publishers returned most of the copies to him. Hewrote in his diary: “I have nine hundred volumes in my library, sevenhundred of which I wrote myself.” A few years later came the success ofWalden. One more: Columbus was rejected by scores of kings, queens,and nobles before ﬁnding the sponsorship to sail to the New World. Marden says, “Show me a really great triumph that is not thereward of persistence.” Genius, when you look more closely at it, usu-ally turns out to be the result of uncommon dedication to a task.Vocation and callingWhile lauding a university education and the reﬁnements it can pro-duce in a person, Marden criticizes the gap between the high ideals ofstudent years and the cynicism of later adult life. He counsels againstgraduating students simply taking the highest-paid job. An educationshould be considered a “sacred trust,” not to be looted for your ownmonetary ends but to be put into the service of humankind. As Mardenputs it: “There is something inﬁnitely better than to be a millionaire ofmoney, and that is to be a millionaire of brains, of culture, of helpful-ness to one’s fellows, a millionaire of character.” Don’t enter a profession just because it is respectable, he suggests, orbecause one of your parents succeeded in it. “The world does not dic-tate what you shall do,” he points out, “but it does require that you bea master in whatever you undertake.” With deﬁniteness of aim, or theknowledge that what you are doing is worth your time, you will excel atthe task. A job may earn you money, but a vocation earns self-respect. When Alexander the Great was asked how he had conquered theworld, he is said to have replied, “By not wavering.” We cleave to theperson who has the ﬁrmest resolve, who knows who they are and whatthey stand for.Final commentsOrison Swett Marden has for a long time been better known as thefounder of Success magazine, but now that journal is defunct there willhopefully be a swing back to recognition of his writing. Copies of hisbooks are not hard to track down on the internet, but they tend to beexpensive. If you are serious about building up your success library,however, they are worth the money. These volumes are something to 208

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50 SUCCESS CLASSICShold on to. It is easy to see how the book electriﬁed audiences of itsera, for you cannot come away from its pages without being inspired togreater things, or to stick at what you have embarked on. The style of Pushing to the Front, though tremendously enjoyable, isnot as old-fashioned as you might expect—many of Marden’s com-ments could have been made by someone writing today—and in termsof quantity of good content it beats most of today’s success and self-help literature. We have only had space here to look at Volume 1, forinstance, and even that peremptorily. Marden’s references to unfamiliarpeople will have you reaching for your biographical dictionary, and youwill be provided with a history lesson alongside the motivational class.Orison Swett MardenMarden was born to New Hampshire farmers in 1850, but both hisparents died before he was seven and he lived in a number of fosterhomes. He managed to go to college, graduating in Law from BostonUniversity in 1871, and gained further degrees (LLB and MD) fromHarvard University. He also studied at Andover Theological Seminaryand at the Boston School of Oratory. In his college days he worked in catering and hotels, and became aninvestor in a resort area of Rhode Island. This was followed by the pur-chase of a chain of hotels in Nebraska, then a stint as a hotel managerin Chicago. In 1890, one of his hotels burned down and a smallpoxepidemic ruined the rest of the rest of his business. Back in Boston,Marden put together his collection of inspirational stories and notesand, inﬂuenced also by Emerson, Longfellow, Oliver Wendell Holmes,Phillips Brooks, and New Thought writers, published the ﬁrst versionof Pushing to the Front in 1894. The retailer J. C. Penney was amongthe many who ascribed their success to reading the book. In 1897,Marden founded Success magazine, which gained a circulation of half amillion copies. Though publication ceased in 1912, six years later herevived the magazine. He died in 1924. Marden was a proliﬁc writer, averaging two books a year. Titlesinclude Every Man a King; Not the Salary but the Opportunity; Peace,Power and Plenty; Success Fundamentals; and The Victorious Attitude.For an introduction to his thought, see Real Success, by former Successeditor Ken Shelton. 209

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1997 The Spirit to Serve“If you’re in the service business and your name is above the door, it’s important for people to be able to link a face to the name. I want ourassociates to know that there really is a guy named Marriott who cares about them, even if he can only drop by every so often to personally tell them so.”“For the key to prospering and adapting in the coming decades amidstan ever-escalating rate of change is to ﬁrst be clear about and resolutelydedicated to what you stand for and why that should never change. You must then be just as resolutely willing to change absolutely everything else. This rare ability to manage continuity and change is the secret of ” Marriott’s past—and the key to its future. Jim Collins, Foreword In a nutshell Hard work, continuous self-improvement, and a sense of building for the future create identity. From identity comes focus, from focus, success. In a similar vein Jim Collins Good to Great (p. 80) Michael Dell Direct from Dell (p. 96) Spencer Johnson Who Moved My Cheese? (p. 168) Sam Walton Made in America (p. 276) 210

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CHAPTER 34 J. W. Marriott Jr.O ften provided as a complimentary copy for guests in Marriott hotels, The Spirit to Serve: Marriott’s Way may be an unlikely success classic, but in a surprisingly modest way it illustratessome valuable principles that can be applied to personal as well as cor-porate achievement. If you travel with any frequency, you have probably lodged in ahotel managed or franchised by the Marriott company. If your stay wasenjoyable, it was not by chance. Over several decades, Marriott devel-oped “standard operating procedures” (SOPs)—such as 66-point check-lists for room cleaning, recipe cards for the restaurants, and guestsatisfaction scorecards—to ensure uniform high standards. J. W.Marriott Jr. makes the startling remark—for an entrepreneur—thatbuilding a business can be boring. There is a great deal of grunt work,but you have to put in the hours to create systems that work everytime. Without consistency, a service business does not create an endur-ingly positive reputation. Here we are reminded of Orison SwettMarden’s remark, “Success is the child of drudgery and perseverance. Itcannot be coaxed or bribed; pay the price and it is yours.” Are attention to detail and hard work the only factors that accountfor Marriott’s rise to industry leader? Let us brieﬂy consider someimportant points in the company’s life.Laying a foundationIn 1927, J. W. Marriott Sr. moved with his wife from Utah toWashington DC. Their ﬁrst step into the hospitality industry was asmall franchise selling root beer. Marriott Sr. later established a chainof restaurants called Hot Shoppes, which ﬂourished through theDepression. In 1937, noticing that passengers on the newly emergingairlines wanted to eat, he formed a successful in-ﬂight catering busi-ness. This was followed by contracts for cafeterias feeding governmentworkers through the war years, and later for industrial commissaries,including General Motors’ and Ford’s. 211

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J. W. MARRIOTT JR. The ﬁrst Marriott hotel was not opened until 1957, by which timeJ. W. “Bill” Marriott Jr. had ﬁnished college and joined the company.Seeing the potential of the expanding hotel business, he took over thelodging section of the ﬁrm and began opening more hotels. By the1960s, Bill Marriott voiced the hope that one day the company couldequal the success of the Howard Johnson chain, which then seemed toline every American highway.Becoming a playerWhile Howard Johnson lost its way, Marriott prospered. By the 1980s,it had become one of the biggest real estate developers in the country,in some years opening two new hotels a week. Yet it did not actuallyown the hotels. The family had realized that its greatest proﬁt, and itsgreatest expertise, was in managing hotels, and as soon as these hadbeen built they were sold to investors. Left with the valuable long-termmanagement contracts, the company enjoyed the ﬂexibility of not hav-ing heavy mortgages to service. This system worked because the ﬁrmhad identiﬁed the one thing it could do better than anyone else: designand implement the processes that resulted in a great guest experience. This narrowing down of purpose paid dividends. Today, Marriotthas over 2,000 establishments in 40 countries. Its four publicly listedcompanies are worth over $12 billion and it employs more than130,000 people.The people differenceThese are impressive ﬁgures, but how do we explain the leap from a$50 million enterprise in 1960 to one worth over $12 billion today? Inanyone’s language, this is a case of “good to great.” The ﬁrst answer may seem obvious, but Bill Marriott maintains thatit is how the company treats staff. He writes that Marriott is in thepeople business more than it is in the service business, and that “if youtreat your people right, they will treat guests right.” If they are stressed,dissatisﬁed or poorly trained, it is the customers who will feel theeffects. This “employee ﬁrst” policy is almost a cliché, but the companyactually puts its money where its mouth is with a proﬁt-sharing pro-gram that has been in place since 1959, better than average training 212

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50 SUCCESS CLASSICSsystems, and a free phone line to counselors and experts to solve non-work problems. This, and a culture of openness ensuring that staff at alllevels of the organization are listened to, has led to Marriott’s beingjudged one of Fortune magazine’s “Top 50 companies to work for.” In contrast, hotel chains focused only on making money, which donot try to produce any service “buzz,” have had only average growth.Not until someone feels that they are at the front line of a noble idea(in this case, making hotel guests feel welcomed and valued) will theybe motivated.Change amid order, order amid changeBill Marriott identiﬁes two turning points, what he calls “revolutions,”in the company’s history. The ﬁrst was to move from its catering rootsinto hotels on a large scale. The next came in the 1980s. The ﬁrm realized that its growth would be limited if it only ran“full-service” hotels, and looked into the idea of building other types oflodging, including medium-priced, budget, and long-stay. Since the fearwas that these sideways moves would dilute the Marriott brand, therewas ﬁerce internal debate about what to do; many Marriott staffersthought that it would be 25 years of work down the drain. Those in favor won and the company began building the“Courtyard by Marriott” hotels. Suddenly, the huge mid-priced andbudget hotel market became its oyster, and it grew exponentially. It wasable to do this without harming the full-service Marriott brand,because the cheaper hotels were run on the same strict quality controllines. Unlike other chains, amid the expansion it did not lose its com-mitment to the customer or its relentless service improvement goals.Marriott quotes Alfred North Whitehead: “The art of progress is topreserve order amid change and to preserve change amid order.” The company certainly found itself in some dead ends: investmentsin a travel agency, a cruise ship company, theme parks, and home secu-rity systems. Yet Marriott says: “Companies that don’t risk anything will inevitably ﬁnd themselves falling behind those that do. You can lead change or it can lead you.”Risk taking only makes sense when you have a core set of values thatdo not change. 213

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J. W. MARRIOTT JR. “Truly great companies maintain a set of core values and a core pur-pose that remain ﬁxed while their business strategies and practices con-tinually adapt to a changing world.” These words from managementthinkers Collins and Porras sum up not only the Marriott company, butsuccess generally. If you know who you are, you can be more ﬂexible inwhat you decide to do, and clearer about what not to do.Final commentsIn their groundbreaking Built to Last: Successful Habits of VisionaryCompanies (1994; see p. 85), Collins and Porras overturned conven-tional thinking by suggesting that great, long-lasting companies arerarely founded on some marvelous new product. Often starting veryslowly, these ﬁrms put an emphasis on the vitality and philosophy ofthe ﬁrm itself; from this springs great services and products. Hewlett-Packard, for instance, invented excellent things, but it was the fosteringof a nonhierarchical culture of innovation and engineering excellencethat made it uniquely successful. In Marriott’s case, to answer the initial question of what made itstand out in its industry, we notice its organizational culture of open-ness; an ethic of continuous self-improvement; an eye on the future;and attention to the little things. In putting good service before moneymaking, it paradoxically guaranteed its own proﬁtability. This bundleof values creates a sense of internal identity even amid massive expan-sion into new areas. As the French say, “Plus ça change, plus c’est lamême chose” (The more things change, the more they stay the same). The Spirit to Serve is not a trumpet-blowing history of the company.Bill Marriott is candid about the mistakes it has made and the opportu-nities it perhaps should have taken. But above all, his understated workis about maintaining focus and keeping true to your original purpose. 214

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50 SUCCESS CLASSICSJ. W. Marriott Jr.Born in 1932 in Washington DC, Marriott started working for the fam-ily ﬁrm when he was 14, stapling invoices in the accounting depart-ment. He worked for four years in a Hot Shoppe restaurant whileobtaining a ﬁnance degree at the University of Utah. Graduating in1954, he spent two years as a supply ofﬁcer in the US Navy, followedby marriage to Donna Garff. At 32 he was made president of the Marriott company, and in 1972,when he was 40, his father passed the CEO role on to him. TheMarriotts’ three sons and a daughter all now work for MarriottInternational. The Spirit to Serve was written with Kathi Ann Brown,who provides her own portrait of Marriott in an Afterword. 215

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1962The Dynamic Laws of Prosperity“Let us be done with thinking of poverty as a virtue. It is a common vice.”“There is basically one problem in life: congestion. There is basically one solution: circulation. Systematic giving is, therefore, a powerfulpractice that blesses every phase of our lives, as it keeps us attuned to the wealth of the universe.” In a nutshell God does not want you to be poor; appreciate the universe’s abundance and your right to prosperity. In a similar vein Florence Scovel Shinn The Secret Door to Success (p. 246) Wallace D. Wattles The Science of Getting Rich (p. 282) 216

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CHAPTER 35 Catherine PonderC atherine Ponder had always been interested in the issue of spiri- tuality and wealth, and when she became a Unity Church minis- ter in 1958 she decided to study the Bible more closely. She learned that the identiﬁcation of piety with poverty had arisenin the Middle Ages, when the feudal system sought to keep people intheir place. In childhood she had been given to think that “a poorChristian is a good Christian,” but nowhere in the Bible did she ﬁndevidence for this. The more she read, the more she realized that it wasa textbook for prosperity.Teaching prosperityIn 1958, when America was in a recession, members of Ponder’s con-gregation were asking her for guidance on how to get through it. Shestarted giving prosperity classes, teaching that prosperity was ﬁrst andforemost a state of mind; a mindset of lack could only manifest nega-tive results. Many of her members experienced dramatic turnarounds—unex-pected raises, promotions, debts paid—yet what struck Ponder washow many people wondered whether it was “right” to seek prosperity;that is, whether it was consistent with spiritual values. Didn’t the Biblesay, “You cannot serve God and Mammon” (Matthew 6:24)? Didn’tJesus say, “How hard it is for them that trust in riches to enter thekingdom” (Mark 10:24)? Ponder responded to the ﬁrst question by making a distinction:Mammon is wealth that is worshiped for its own sake; it is wealth with-out God. Prosperity thinking, on the other hand, puts God ﬁrst as thesource of your supply. She agreed that Jesus had told a wealthy man togo and sell everything he had, but it was because he was still attached tohis riches; he did not yet recognize God as the source of his supply. 217

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CATHERINE PONDER The Dynamic Laws of Prosperity is generally considered to bePonder’s classic work, a carefully and compassionately written com-pendium of the secrets and techniques of prosperity. The following is asample of her ideas.Desire + visualization and affirmation = successThe brain works in terms of mental images, Ponder writes, and what-ever images it has are likely to become reality. You can, therefore, liter-ally see your way to success. When you create prosperous images fromscratch, don’t be “reasonable,” think big. Project thoughts of increaseonto others, and you will ﬁnd that they do prosper in health and mone-tary terms. Send positive thoughts to those with whom you are in con-ﬂict, and watch them soften their stance. That this could work may atﬁrst seem incredible, but is simply an extension of the “speaking wellof others” that you were taught to do as a child. Denouncement has away of bouncing back on you, but pointing out someone’s good pointswhile keeping quiet about their bad is both truthful and prospering. Ponder tells of a man who “dared to write out hundreds of timeshow he wished things to be, rather than fretting about how theyappeared at the moment.” The man was not deluded, but was simply“afﬁrming his good”; that is, making ﬁrm a desire through the powerof speech or writing. Desires are healthy, Ponder says: they are likeGod knocking on the door of our mind, the means by which we candevelop our full potential. You cannot expect to be successful, sheadds, when you “idly drift in a stream of small events and smallexpectations.” The secret of turning desires into reality is to write them down. Youmust be speciﬁc about what you want and when exactly you would liketo achieve it, because the fuel of the imagination is detail. Rememberthe phrase “Fortune favors the bold.” Life does seem to clear a path forthose who know what they want. Nature respects purpose. Writingthings down clariﬁes your purpose in a way that idle thought cannot.Prosperity is circulationTo attract prosperity, don’t ever think about yourself as poor or saythat you can’t afford something. Count your blessings, focus on abun-dance, look only for opportunities. If you don’t have something that 218

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50 SUCCESS CLASSICSyou desire, use the “vacuum law” of prosperity and create room for itby throwing out old goods. Make way for growth. Ponder talks in terms of radiation and attraction; that is, the thoughtsthat you give out coming back to you in some form. You engage in radia-tion and attraction all the time, but because you are not properly awareof it you don’t see the error in radiating thoughts of negativity and lack.A person trained in prosperity thinking will be very careful only to thinkthoughts of prosperity, knowing that nothing but these can attract suc-cess back to them. Appreciate the prosperity principle that you’ve got togive to get. You should expect the very best in life, but you must “givefull measure for the good you wish to receive” in advance. Emerson’sfamous essay “Compensation” highlighted this basic law of prosperity. Ponder describes a law as “a principle that works.” The practice oftithing, she argues, puts you in tune with the universal law of circula-tion. Many people think it old-fashioned, but giving away the ﬁrsttenth of your income demonstrates to yourself that the universe is anabundant place and that in acknowledgment you are returning some ofit to its source—“just as the farmer returns one-tenth of his seed forsoil enrichment.” She notes that some of the magnates of the twentieth century—JohnD. Rockefeller and the Heinz, Colgate, and Kraft families—attributedtheir amazing success to tithing. Between 1855 and 1934, Rockefellergave away over $500 million, and when asked why, his standard linewas, “God gave me my money.” Ponder also recalls the words ofMoses: “Thou shalt remember Jehovah thy God, for it is He that giveththee power to get wealth” (Deuteronomy 8:18). The key point about tithing is that it is systematic giving, not the adhoc giving that we normally associate with charity. In systematicallygiving the ﬁrst 10 percent of whatever you earn, you will discover thatthe remaining money goes further, and that the universe will want togive back to you systematically. Tithing is much more than dutiful giv-ing to charity, it is also, Ponder points out, an act of personal growth(it does, after all, require courage!) “by which one evolves into largergiving (and larger receiving).”How to see moneyPeople often have a funny attitude about money, Ponder says. They arequick to say that money doesn’t mean a lot to them, but spend their 219

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CATHERINE PONDERlives working to get it. Why not admit that money is important andthat it is basic to living a good life, wonderful if rightly used? Money reacts to your attitudes about it, Ponder comments, thereforeif you think well of it and admire what it can do, you are much morelikely to enjoy more of it. See it as a tyrant and it will be so. Continu-ally remind yourself of the relationship between money and thought.Think of and expect lavish abundance for the day ahead when youwake up in the morning. You may be surprised at what happens. Ponder includes a fascinating reference to Einstein, saying that heshook up the scientiﬁc world by proving that substance (or energy, theunformed) is convertible to matter (the formed, which includes money).Einstein showed that the physical and nonphysical worlds are convert-ible and interchangeable. Prosperity thinking acknowledges the connec-tion between the invisible substance or energy that makes up theuniverse and your thoughts. By connecting the two, you have greatercontrol over the creation of matter.Final commentsThis discussion is merely an appetizer. Most of the 20 chapters of TheDynamic Laws of Prosperity deal with a different prosperity law, cov-ering health, debt, work, persistence, intuition, and a truly unusualchapter on the prospering power of charm. Though the book wasmostly written in the late 1950s, many of its ideas were ahead of theirtime. In the face of the conformity of her era, Ponder dares the readerto be different, noting that uniqueness always pays and it is your dutyto be like no other. If you are an academic Bible scholar you may not agree withPonder’s interpretation of biblical stories, but the book is best read forinspiration and for its quiet good sense about thinking prosperously.The Dynamic Laws of Prosperity may be one of the more unusual suc-cess classics, but could be the most valuable to you if you are willing tohave an open mind. (The chapter on overcoming debt may on its ownjustify the price of the book.) Consider it a spiritual complement to themore “nuts and bolts” books on ﬁnancial success. 220

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50 SUCCESS CLASSICSCatherine PonderBorn in 1927, Catherine Ponder studied education and business inNorth Carolina before being ordained as a nondenominational UnityChurch minister in 1958. Her ﬁrst ministry was in Birmingham,Alabama, followed by Austin, Texas, then San Antonio. In 1973 shemoved to Palm Desert, California, where her ministry continues to thisday. Ponder has written 12 books, including The Prosperity Secrets of theAges, The Dynamic Laws of Healing, The Millionaires of Genesis, TheMillionaire Joshua, and The Prospering Power of Prayer. She has lec-tured across the United States. 221

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1998Take Time for Your Life “I’ve grappled with the same issues my clients are dealing with. I’ve worked ridiculous hours, built a successful business, made plenty of mistakes in relationships, and paid little attention to my health. Overthe last several years, I’ve used the process in this book to improve my ” own life. I know it works. In a nutshell Achievement is more meaningful when it springs from a base of physical, emotional, and spiritual well-being. In a similar vein Stephen R. Covey The 7 Habits of Highly Effective People (p. 90)Jim Loehr & Tony Schwartz The Power of Full Engagement (p. 192) Thomas Moore Care of the Soul (50SHC) 222

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CHAPTER 36 Cheryl RichardsonO riginally a tax consultant, Cheryl Richardson found that her clients needed advice and support on making decisions on the nonﬁnancial aspects of their lives. Eventually she stopped doingpeople’s tax returns and gave workshops on the “secrets of success.” Life planning or personal coaching is now a well-established ﬁeld,but Richardson, one of American’s top life coaches, was an early prac-titioner. Take Time for Your Life: A Seven-Step Program for Creatingthe Life You Want is her bestselling introduction to what she does. It isdifferent to most success titles in that she focuses on life instead of sim-ply career or personal goals. Outward achievement is all well and good,but if it is not balanced by what she calls “extreme self-care” you willburn out and be no use to anyone.Slowing down to succeedThe best part of Take Time for Your Life is its vignettes of people withwhom Richardson has worked. Most of her clients seem to live fast-paced lives and dream of more time for themselves, more fun, andmore authenticity in their existence. They feel that it is time to step offthe merry-go-round and take stock. Richardson identiﬁes the seven common obstacles that these peopleseem to face in living their best lives:1 They generally have difﬁculty putting themselves ﬁrst.2 Their schedule does not reﬂect their priorities.3 They feel drained by certain people or things.4 They feel trapped for monetary reasons.5 They are living on adrenalin.6 They don’t have a supportive community in their life.7 Their spiritual well-being comes last.You may feel that to get ahead or simply maintain your current successyou have to work very long hours, sacriﬁcing everything. This is a 223

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CHERYL RICHARDSONmyth, and Richardson shows how altering even small things aboutyour daily existence can make a big difference. She mentions onewoman, for instance, who tried leaving work by 5.30 pm each day andfound, to her surprise, that her business did not fall apart; she achievedthe same amount through greater focus and delegating. Yet Richardson’s book is less concerned with time management thanit is with self-management. She does not suggest abandoning yourresponsibilities, merely that you need to devote much more considera-tion to the renewal of your energies. In his book The 7 Habits ofHighly Effective People (see p. 90), Stephen Covey calls this “sharpen-ing the saw.” Without frequent sharpening you become blunt in a pro-ductivity sense and lose the ability to connect with the people you loveand inﬂuence those you work with.Tipping the scales in your favorOne of the many ways to regain balance is to create what Richardsoncalls an “Absolute Yes” list, a ranking of what you feel are the mostimportant aspects of your life. One client of Richardson’s, Joan, put atthe top of her list daily time to herself to read, meditate, or exercise.Second was time spent with her husband each evening. Next camequality time with her children, then study to complete her degree, timewith friends, and ﬁnally household chores. She had to reorganize herlife to ﬁt these priorities, but the result included much better moodsand greater harmony. Note that the elements in her life did not change,just the order of priorities. The gift of Take Time for Your Life, through its hundreds of ideasfor self-care, is the feeling that you do not have to be hurried along bycircumstances. You can regain control of your life simply by makingmore conscious decisions. The seven obstacles to a balanced life men-tioned above are the springboard for Richardson’s strategies to “winback” our life. The following gives a taste:❖ Regular “downtime” is important for your sanity. At ﬁrst you may feel very edgy in doing “nothing” but, as Richardson puts it, “We all need a holiday from thinking too much.”❖ Pay people to do services you normally do. Though it costs money, “sharing the wealth” allows you to care for yourself and think at a higher level, both of which can bring you greater success. 224

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50 SUCCESS CLASSICS❖ Go through old stuff and papers and throw much of it out. This makes way for what you really want to come into your life.❖ Don’t fret over spending a little less time working. The world has a way of rewarding those who are focused and make better use of their time.❖ Identify the drains on your life; that is, the people, places, and situa- tions that tax your mental and physical energy. Eliminating or less- ening their impact is the beginning of successful living and abundance.❖ Stop running on caffeine and adrenalin. “Fuel your body with pre- mium fuel and it will provide you with the strength and stamina to live well.” Caring for your body is essential to living a high-quality life.❖ Consciously engineer more “amazing moments” into your life: bring back the soul.❖ Tell people when you are grateful for what they have done.❖ Write a journal.❖ Notice your dreams.❖ Follow your intuition.❖ Have the courage to seek your highest purpose instead of simply looking for another job.Taking time for financial healthAs you would expect from a former ﬁnancial consultant, Richardsonincludes a useful chapter on “Financial health.” She manages to bridgepractical ﬁnancial skills with a more spiritual attitude to money. Herthesis is that once you decide to take more responsibility for yourﬁnances (paying bills on time, paying off your debts, keeping anaccount of spending), money stops being a source of frustration andbegins to ﬂow more freely into your life. You have to get more seriousabout money before it gets serious about you. She identiﬁes all the attitudes you may have to money that preventyou from attracting more of it, and disabuses the reader of such ideasas “I am a creative person, I shouldn’t have to worry about ﬁnancialstuff.” A person can be both spiritually and ﬁnancially rich, Richardsonsays. She includes a list of books at the end of the chapter that can helpyou appreciate this, covering the practical and spiritual aspects ofwealth, including authors such as Catherine Ponder (see p. 216),Thomas Stanley (see p. 258), and Robert Kiyosaki (see p. 172). 225

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CHERYL RICHARDSONFinal commentsWith her emphasis on spiritual well-being Richardson may not seemtoo practical for some readers, but her deﬁnition of “spiritual” is fairlyloose. It simply means the sense of calm that comes to you when youare willing to stop and contemplate. Though uncomfortable at ﬁrst, thepractice reconnects you to what is important and therefore puts yourlife on more solid ground. You need to appreciate the truth that success should not be “at allcosts,” that you don’t want to achieve something if it leaves behind atrail of poor health, ignored spouses and children, and the hollownessof never having any time for yourself. In The Richest Man in Babylon(see p. 68), George Clason’s message for a lifetime of ﬁnancial securityis that when you receive money you must “pay yourself ﬁrst.” Richard-son’s principle of “extreme self-care” is similar. It allows you to go intothe world refreshed and with priorities sorted. If you don’t do this, youbecome an empty reﬂection of other people’s wishes. Despite the pres-sures, don’t forget who you are and what you love doing in life. With its checklists, wealth of ideas, and warm, friendly style, TakeTime for Your Life is as close as you will get to a personal coachingrelationship in a book. Sometimes you need a person outside your regu-lar circle of friends, family, and co-workers if you are to see your trueworth. While therapy will focus on your problems, a good life coachwill work with you on your possibilities. The elements of success arealready there—you simply need to identify them and bring them to thefore. 226

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50 SUCCESS CLASSICSCheryl RichardsonRichardson is a frequent guest on US television shows such as Oprahand The Today Show, and is a professional speaker and seminar leader. Take Time for Your Life was a No. 1 New York Times bestseller. Herother best-known work is Life Makeovers. 227

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1986 Unlimited Power “The movers and shakers of the world are often professional modelers—people who have mastered the art of learning everything they can by following other people’s experience rather than their own. ”“Often we are caught in a mental trap of seeing enormously successfulpeople and thinking they are where they are because they have some special gift. Yet a closer look shows that the greatest gift thatextraordinarily successful people have over the average person is their ” ability to get themselves to take action. In a nutshell Success leaves clues, but they must be acted on. In a similar vein Steve Andreas & Charles Faulkner, NLP (50SHC) Anthony Robbins Awaken the Giant Within (50SHC) Brian Tracy Maximum Achievement (p. 264) 228

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CHAPTER 37 Anthony RobbinsI n the early pages of Unlimited Power: The New Science of Personal Achievement, Robbins tries to deﬁne power. He quotes John Kenneth Galbraith, who said, “Money is what fueled the industrial society.But in the informational society, the fuel, the power, is knowledge.” How many of us really appreciate this? We are still so used to think-ing that power is in money or position that it is easy to overlook thatpower is in the person. Our ability to inﬂuence and persuade others,our capacity to build something out of nothing, our strength to reasonfor ourselves, all make up the capital of our personal power. The chief skills we must learn for success, Robbins says, are commu-nicative. Successful people are master communicators, but they alsocommunicate masterfully with themselves. They decide what meaningan event will have for them, and as a consequence tend not to dividetheir life’s experiences into “successes” and “failures” but look more toresults. Reﬁnement based on feedback about results is the basis of allprogress, but it requires a certain open-mindedness. Robbins discussesthe seven traits of successful people: passion, belief, strategy, clarity ofvalues, energy, bonding power, and mastery of communication. All linkin to each other, but by applying each to yourself you can begin to real-ize that there is an “anatomy of success” that can be studied.Modeling the bestThe easiest way of becoming successful is to model the behavior of analready successful person. This is an NLP (Neuro-Linguistic Program-ming) concept based on the premise that every human being has thesame neurology, therefore “anything you can do I can do”—by copyingit. Robbins mentions Blanchard and Johnson’s bestseller The OneMinute Manager (see p. 30), which was based on modeling some ofAmerica’s top managers, to make his point that “success leaves clues.”Robbins himself modeled the best shooters in the US army so that hecould give courses in shooting accuracy—even though he had never 229

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ANTHONY ROBBINSheld a gun before in his life. Even if you have no expertise or know-ledge of something, with the right models you can learn—and quickly. Everyone models, but most do it unconsciously. If you are able tochoose the inspirational people and skills that can assist you, your des-tiny comes under control. Robbins suggests that the real horror of ghet-tos and poverty-stricken places is not the daily struggle to survive, butthe effect of these environments on personal ambition and belief. “If allyou see is failure, if all you see is despair, it’s very hard for you to formthe internal representations that will foster success,” he writes. It is great to have personal mentors, but they are not absolutely nec-essary. If you can read, you have a whole universe of accomplishmentarrayed before you, and it is difﬁcult for it not to rub off. Never listento bar-room wisdom or sit around at “coffeepot seminars,” Robbinswarns. If you want a better life, don’t seek gossip, seek great modelsand mentors, in real life and in books, whose behavior you can follow.Let these people, not simply your friends or family, be the standard bywhich you gauge yourself.Running your brainRobbins devotes a chapter to “submodalities,” the types of visual,auditory, and other forms of sensory experience that you can manipu-late in your mind in order to change the way you see something. Onemethod, the “swish” pattern, involves replacing existing negativeimages in your mind with positive ones. When you run through the“ﬁlm” in your head of this happening a few times, it is difﬁcult to havethe same view of what you thought was an addictive or destructivebehavior. This may sound dubious, but try it. You need to learn how to“run your brain.” Robbins puts the idea before us that “Misfortune is a point ofview.” There are always different ways to perceive something, and by“reframing” an experience you have much more choice in how torespond to things in life. Remember, successful people see things less interms of good or bad, but as results. The result is the fact, not youremotional response to it. Your response is your choice. At the practical work level this sort of thinking is valuable, for whatis an entrepreneur, Robbins asks, if not someone who sees existingresources through a different lens, reframing them so that they becomesomething new and valuable. An entrepreneur is an expert reframer. 230

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50 SUCCESS CLASSICS To appreciate NLP, you have to appreciate that, even though youthink of yourself as a person or perhaps a soul, your brain still operatesas a machine. In contrast to “deep” therapy such as psychoanalysis,NLP holds that change can happen in an instant. In quantum physics,Robbins notes, particles do not slowly change and develop over time—they make quantum leaps. Start to think of your brain in an impersonalway; it is your servant to program in order to achieve your highestgoals and live by your highest values.Great goals produce actionRobbins uses a biblical quotation to explain the life and death powerof quality goals: “Where there is no vision, people perish” (Proverbs29:18). The brain and nervous system work in a way that means you tendto live up to the private images of your life that you carry around withyou. Whatever you ask for in life is most likely what you will get.Robbins suggests, “People are not lazy. They simply have impotentgoals.” Late one night after a seminar, he encountered a homeless personwho asked him for a quarter. Although he had more money, that isexactly what he gave him, saying to the man, “Life will pay whateverprice you ask of it.” Perhaps this was somewhat mean, but the anecdote illustrates apowerful principle. Ask for great success and joy, and you’ll probablyget it. Don’t ask for anything in particular, and you will get whateverlife throws at you. Be precise in your everyday language, but particu-larly when it comes to goals. Use what Robbins calls the “power ofprecision,” because language shapes thought and thought shapesaction.The magic of rapportAll successful people know how to create rapport. They have inbuiltways to get themselves into the mindset of whomever they encounter sothat the encounter will have real value. Some people spend a lifetimedeveloping their interpersonal skills, but there are skills of rapport thathave the same effect and that you can learn in a few minutes, if youcan be bothered. 231

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ANTHONY ROBBINS Robbins’s point is that you can become a persuasive person moreeasily through establishing agreement than through competition.Competition is one of many patterns you have in your brain that youlet run without really thinking whether you could replace it with some-thing more effective. The route to unlimited power is continually tolook for a different, better way to do something. If you always stick tothe same techniques, you will always get the same results. This is afoundational idea of NLP, but Robbins explains it well.Final commentsWritten when Ronald Reagan was president, some of UnlimitedPower’s references are a little dated, but even the seasoned successscholar will be reminded why Robbins is the world’s No. 1 motiva-tional guru. The book is less reﬁned than the later Awaken the GiantWithin, but remarkable for the fact that Robbins wrote it when he wasonly 25. Piling into it everything he knew, he punched out the ﬁrstdraft in less than a month. If you have had little experience with NLP it is a great introductionto some of the concepts and techniques, including modeling. One ofRobbins’s great points is: “No matter how grim your world is, if youcan read about the accomplishments of others, you can create thebeliefs that will allow you to succeed.” The apparently innocuous activ-ity of reading the success stories of people you admire, availing yourselfof centuries of life experience, has been the springboard of many illus-trious people. Fortune doesn’t shout or beckon, but it does leave clues for thosewho are interested. Yet as Robbins points out, unlimited power is notyours until you develop the skill of action. His book is as good a start-ing point as any to help you become a person of distinction; that is,someone who acts. 232

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50 SUCCESS CLASSICSAnthony RobbinsNow in his early forties, Robbins grew up in Los Angeles in modest cir-cumstances. He earned a reputation as a master salesman selling ticketsto motivational events, and his ﬁrst mentor was guru Jim Rohn.Discovering NLP in 1983, Robbins toured America with the boast thathe could cure people of phobias in 15 minutes. For a time he was apartner of John Grinder, one of the founders of NLP. Robbins is best-known for his weekend seminars that involve partici-pants walking over beds of hot coals. He has worked with IBM, AT&T,American Express, and the US Army as well as sports teams andOlympic athletes, and been a personal coach to Bill Clinton, MikhailGorbachev, and Andre Agassi. His Foundation runs programs to help the elderly, young people, thehomeless, and people in prison. Robbins lives in California with hiswife and children. 233

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2002 Leadership theEleanor Roosevelt Way“It is true that I am fundamentally an optimist, that I am congenitally hopeful. I do not believe that good always conquers evil, because I have lived a long time in the world and seen that it is not true… It isnot wishful thinking that makes me a hopeful woman. Over and over, I have seen, under the most improbable circumstances, that man canremake himself, that he can even remake his world if he cares enough to try.” Eleanor Roosevelt, You Learn by Living In a nutshell One of the duties of the leader is to lift up those who are not able to advance themselves. In a similar vein Warren Bennis On Becoming a Leader (p. 18) Abraham Lincoln (by Donald T. Phillips) Lincoln on Leadership (p. 186) Nelson Mandela Long Walk to Freedom (p. 198) 234

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CHAPTER 38 Robin GerberE leanor Roosevelt was one of the most admired people of the twen- tieth century, put on the cover of Time magazine three times. We think of her now as a vital force in her husband’s administration,protector of the dispossessed, and UN stateswoman, but for the ﬁrstfour decades of her life she was comparatively anonymous, living up tothe expectations of those around her and acting fully in accordancewith her class and upbringing. Her story is interesting precisely becauseshe was not overly ambitious or achievement oriented, but with timeand circumstances became so. Robin Gerber’s book, Leadership the Eleanor Roosevelt Way:Timeless Strategies from the First Lady of Courage, is not a full bio-graphy of “ER,” but traces some of the key points in her life to illus-trate how she came to lead and why she inspires a new generation.From orphan to young motherAnna Eleanor Roosevelt was born into upper-class New York society in1884, with future president Theodore Roosevelt as an uncle. Hermother Anna was a society beauty who was cold toward her plaindaughter. Her father Elliot adored Eleanor and she him. He was a pop-ular man but had a drinking problem. While Elliot was exiled to a clinic for recovering alcoholics, Annagrew ill and died of diphtheria. Six months later, Eleanor’s four-year-oldbrother died. Having succumbed to depression, drugs, and alcohol, Elliotthen passed away a few months before Eleanor’s tenth birthday. He wasthe center of her world and she was shattered. As Gerber suggests, thispainful childhood would leave Eleanor with an empathy for those whowere suffering that was basic to her personality and achievements. After boarding school in England, Eleanor returned to the UnitedStates and before her twenty-ﬁrst birthday married the dashing young 235

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ELEANOR ROOSEVELTFranklin Delano Roosevelt (“FDR”), a distant cousin. For the next 12years Eleanor was a dutiful wife and devoted mother, having six chil-dren, one of whom died in infancy. The family lived at Hyde Park,Franklin’s family home in New York, and the young Eleanor had tolive uncomplainingly under the command of her mother-in-law, SaraDelano. While Franklin became a senator, the outbreak of the First WorldWar gave Eleanor a chance to step outside the gilded cage and do somevolunteer work for the US military. As a newly appointed assistant sec-retary of the US Navy under Woodrow Wilson, her husband wasspending a great deal of time away.Out of the chrysalisThirteen years into the marriage, the bottom fell out of Eleanor’s worldwhen she discovered that FDR was having an affair with her social sec-retary. Devastated once again, she emerged from a time of mourningand reﬂection with a decision to continue with the marriage. She“chose life,” as Gerber puts it, and moved on. In her book You Learnby Living, Eleanor wrote:“Courage is more exhilarating than fear, and in the long run it is easier. We do not have to become heroes overnight. Just a step at a time, meeting each thing that comes up, seeing it is not as dreadful as it appeared, discovering we have the strength to stare it down.”This courage was tested again in the summer of 1921 when the familywere staying at their holiday home in Maine. Franklin had been swim-ming and that night felt tired. The next day he could not move his legs.He had been stricken by polio, and would not walk properly again. Eleanor developed a new, separate sense of identity, creating herown circle of friends and shedding the inﬂuence of her mother-in-law.Already in her forties, she discovered her “leadership passion”: socialreform issues. Women had only recently been given the vote, andEleanor became involved in organizations to make the most of thewomen’s voice. She had a retreat built, Val-Kill, where she could enter-tain friends and hold meetings, and in 1926 began to teach history andgovernment classes at the Todhunter School for Girls in New YorkCity, which she had purchased with friends. Leadership involves open- 236

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50 SUCCESS CLASSICSness to the new, Gerber notes, and in these years ER hungrily soughtout experiences and people outside her established circle. In 1928 FDR was elected governor of New York, and Eleanor’scampaigning for the women’s vote was an important factor in the vic-tory. In the presidential race four years later, Eleanor and her team,who coordinated an army of women “grass trampers,” were instrumen-tal in increasing female support for the Democrats. FDR would be inofﬁce for an incredible 12 years, taking the couple through the GreatDepression, the Second World War, and three more elections.First lady of AmericaER held the ﬁrst ever press conference for the wife of a president, andadmitted only women to it. She published a feminist-leaning book, It’sUp to the Women, which sold well and was instrumental in the appoint-ment of the ﬁrst woman cabinet member, Frances Perkins, as Secretaryof Labor. A forceful, active ﬁrst lady was something new, and ER camein for a lot of criticism, attracting tags like “Eleanor Everywhere.” Butshe developed a tough skin; one of her sayings was, “A woman is like ateabag. You never know how strong she is until she gets in hot water.” Eleanor became FDR’s “eyes and ears,” going out into the countryto see the grinding poverty and joblessness that had overwhelmed thenation. Her desire to bond with housewives, mine workers, soldiers,and struggling farmers, to make friends with black and JewishAmericans, would make her seem like a bleeding heart to opponentsand a traitor to her class, but her nose for suffering and oppressionmade her a much-loved ﬁgure for many ordinary people. She was ableto empathize instead of merely offering patrician sympathy. ER gave strong support to improvements in labor laws and con-tributed to the foundation of the civil rights movement by highlightingthe lynchings still taking place in the South. She enjoyed entertainingprominent black Americans in the White House. When her friendMarian Anderson, the great American contralto, tried to book a con-cert in Washington DC at a hall owned by the Daughters of the Ameri-can Revolution, this WASPish organization refused to let a Negroperform. In protest, Eleanor—a longtime member—resigned and helpedorganize a huge concert for Anderson at the Lincoln Memorial. Theblack voters that Eleanor attracted away from the Republicans, Gerbernotes, would stay with the Democrats for the rest of the century. 237

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ELEANOR ROOSEVELTFirst lady of the worldAfter FDR’s death while in ofﬁce in 1945, Eleanor was on her own.President Truman offered her the opportunity to join the American del-egation at the ﬁrst meetings of the United Nations. With great trepida-tion she went, and was given responsibility for helping to develop theUniversal Declaration on Human Rights. Her work to get passed theDeclaration, which UN Secretary-General U Thant described as “theMagna Carta of mankind,” is perhaps her greatest achievement. In the 1950s she became a roving ambassador for the US govern-ment, visiting many nations in the Middle East and Asia and creatingenormous goodwill. ER overcame suspicions of American motivesbecause she made clear that her trips were for listening, not preaching.These travels, and the impression she gave of being a “friend to human-ity” instead of simply a voice of America, gave her the nickname “ﬁrstlady of the world.” In another testament to her liberal values, she foughtagainst the witch-hunt conducted by Senator Joseph McCarthy’s HouseUn-American Activities Committee to identify supposed communists. In her last years she continued to campaign for the Democraticparty, supporting Adlai Stevenson and then John F. Kennedy, and alsohosted a television show, Prospects for Mankind. When Martin LutherKing was jailed in 1962 for opposing segregationist policies, ER per-suaded Robert Kennedy, the Attorney General, to get the chargesdropped. She died the same year.Final commentsIf a mark of a great leader is the ability to create others, EleanorRoosevelt certainly did this, fostering women’s leadership within andoutside America and providing an inspiration to African Americanleaders. While her husband was commander-in-chief with the ability tochange millions of lives at will, she had a daily syndicated column,“My Day,” to work with. Yet this piece of writing, summing up each ofher very full days, was inﬂuential and became a platform for her politi-cal views. Without formal powers, her leadership on issues came fromthe power to persuade, and her journey from shy mother to master ofUN debate is remarkable. Robin Gerber’s book is different to other works on EleanorRoosevelt because it attempts to apply the lessons of her life to women 238

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50 SUCCESS CLASSICStoday. The book interweaves the ER story with the actual experiencesof contemporary women, and provides many tips on mentoring, net-working, and public speaking drawn from ER’s life. While you mayﬁnd a full biography or some of ER’s own writings more satisfying, theworth of Gerber’s work is that it is an easy-to-read introduction to thesubject, attracting a new generation of admirers who wish to knowwhy she inspired so many. Breaking the mold in many ways, today’sleaders such as Hilary Clinton are much in her debt.Robin GerberGerber is presently a Senior Scholar at the Academy of Leadership,University of Maryland, where she gives courses on women and poli-tics. She has a background as a Washington lobbyist and a women’sleadership trainer, and has worked with the Democratic NationalCommittee, the UN, and the State of New York. She contributescolumns to USA Today and other newspapers. Leadership the Eleanor Roosevelt Way includes a foreword by JamesMcGregor Burns, author of the seminal study Leadership. 239

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1959 The Magic of Thinking Big“Believe Big. The size of your success is determined by the size of yourbelief. Think little goals and expect little achievements. Think big goals and win big success. Remember this, too! Big ideas and big plans are often easier—certainly no more difﬁcult–—than small ideas and small plans.” In a nutshell Much of the difference between failure and success lies in what you believe you are entitled to, so you may as well think big. In a similar vein Frank Bettger How I Raised Myself from Failure to Success in Selling (p. 24) Claude M. Bristol The Magic of Believing (p. 42) Napoleon Hill Think and Grow Rich (p. 144) Brian Tracy Maximum Achievement (p. 264) 240

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CHAPTER 39 David J. SchwartzT hink of people who earn ﬁve times as much as you. Are they ﬁve times smarter? Do they work ﬁve times harder? If the answer is no, then the question “What do they have that I haven’t?” mayoccur to you. In a book that has sold several million copies, DavidSchwartz suggests that the main factor separating them from you isthat they think ﬁve times bigger. We are all, more than we realize, theproduct of the thinking surrounding us, and most of this thinking is lit-tle, not big.Plenty of room at the topIn the course of researching The Magic of Thinking Big, Schwartzspoke to many people who had reached the top in their ﬁeld. Instead ofgetting detailed responses, he was told that the key factor in personalsuccess was simply the desire for it. Rather than there being “too manychiefs and not enough Indians,” the opposite is true. Some peoplechoose to lead, others to follow. Success is not primarily a matter ofcircumstances or native talent or even intelligence—it is a choice. From the many little comments and asides that have been made toyou throughout your life, you may have unconsciously written a log ofthe things you can or can’t have, the person you can or cannot be.These daubs of paint may even have been applied by people who lovedyou very much, but the result is that it is not your picture. The Magicof Thinking Big tries to show that in fact the canvas you work on isvast. Schwartz delivers the right quote by Benjamin Disraeli: “Life istoo short to be little.” You must enlarge your imagination of yourselfand act on it. “Thinking big” does work in relation to career goals, ﬁnancial secu-rity, and great relationships—but it is more signiﬁcant than that. Youare challenged to see yourself in a brighter light, to have a larger 241

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DAVID J. SCHWARTZconception of life. This is a choice that is no more difﬁcult than thechoice to keep doing what you’re doing, laboring in darkness. You may feel that some of the ideas and suggestions are somewhatobvious or basic compared to more recent success writing, but, like theother older success classics, The Magic of Thinking Big contains simpleand powerful messages that do not date.The quiet route to successSchwartz’s book is basically about “getting ahead,” with a fair amountof attention given to increasing your income exponentially, making thatdream home a reality, and getting your children a ﬁrst-rate education.It tells us how to think, look, and feel “important.” Is it simply a bland 1950s product of an achievement-oriented con-sumer society? Well, it does have some amusing passages about movingout of one’s “crummy apartment” to a “ﬁne new suburban home.”Readers presumably continue to be attracted because of its materialistpromise, but the paradox of Schwartz’s message is that to get the mate-rial results, you must know the immaterial; that is, you must spendtime alone with your thoughts. Decisions arrived at in managed soli-tude, he says, have a habit of being 100 percent right. Action drives outthought, whereas leaders set aside time for solitude to tap theirsupreme thinking power.Belief is everythingThere is nothing mystical about the power of belief, but you must drawa distinction between merely wishing and actually believing. Doubtattracts “reasons” for not succeeding, whereas belief ﬁnds the means todo the job. Schwartz was in conversation with an aspiring ﬁctionwriter. When the name of a successful author came up, the aspiringwriter quickly said, “But I could never equal him; I’m not in hisleague.” Knowing the writer in question, Schwartz pointed out that hewas neither super-intelligent nor super-perceptive, merely super-conﬁdent. The writer had at some point decided to believe that he wasamong the best, and so he acted and performed accordingly. Most of us believe that the result of an event is the best indicator ofhow successful we are, yet events are much more likely to reﬂect ourlevel of conﬁdence. In Schwartz’s words: “Belief is the thermostat that 242

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50 SUCCESS CLASSICSregulates what we accomplish in life.” Turn the thermostat up and wit-ness the results.Excusitis, the failure diseaseNever depend on luck to get what you want. The only vaccination against“excusitis,” as Schwartz calls it—“commonly known as failure’sdisease”—is conscious self-belief. Schwartz knew that as soon as you hit arough spot your thinking is likely to shrink back to its normal size, yetthis is exactly when it is crucial for it not to do so. Sporting champions donot collapse when, in the course of a game, they are being beaten. Insteadof building a case against themselves, they remember that they are cham-pions. Tennis great Boris Becker tells up-and-coming tennis players thattalent is not enough: you must walk, talk, and think like a champion.Staying bigWhile it is said that a large vocabulary is a big determinant of success,what really counts is the effect that your words have on how you thinkabout yourself. Instead of trying to use long words, Schwartz says, usepositive language, and see how it transforms your mood and the per-ceptions of others. Don’t see yourself merely in terms of how youappear now. You may have an old car, dingy apartment, debts, jobstress, and a crying baby, but they are not truly a reﬂection of you aslong as you are working on the vision of what you will be two yearsfrom now. Concentrate on your assets and how you are deploying themto change the situation, and avoid getting mired in petty recrimina-tions. Absorbing the blows is a quality of greatness. Schwartz also reminds you that every big success is created one stepat a time, therefore it is best to measure yourself against the goals youhave set, rather than comparing yourself to others.Improving the quality of your environmentOr as Schwartz phrases it, “Go ﬁrst class.” This does not mean alwaysgetting the most expensive ticket. It does mean getting your advicefrom successful people, and not giving the jealous the satisfaction ofseeing you stumble. Spend time with those who think on a large scaleand are generous in their friendship. After a while, the base level of 243

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DAVID J. SCHWARTZwhat you think possible will rise. People make assessments of youwhether you like it or not, and the value the world gives you matchesthe one you give yourself. Schwartz has many more useful tips on how to think and act suc-cess, backed up by case histories. They include:❖ Don’t wait until conditions are perfect before starting something. They never will be. Act now.❖ Persistence is not a guarantee of success. Combine persistence with experimentation.❖ Goals, once in the subconscious, provide energy and an invisible guide to correct action.❖ Walk 25 percent faster! Average people have an average walk.Final commentsThis stalwart of the success literature was written in the golden age ofpostwar American industrial society. The focus is on sales, production,executives, getting a great job in a good company. It may be a productof its age, but it transcends it too. The Magic of Thinking Big has liter-ally been worth its (hardback) weight in gold for many people. It is oneof the great examples of the success literature’s call to break free ofself-imposed limitations, to recast your idea of what is possible. The desire for success, Schwartz argues, begins with a willingness toﬁnd the tools that can deliver it. Amazingly, although no one likescrawling in mediocrity, not everyone is seriously interested in ﬁndingand using these tools. Thinking larger thoughts is a kind of magic,since the effort put in is small compared with the long-term results. In the 1890s, a person named Gottlieb Daimler drew a three-pointedstar on a postcard to his family and wrote next to it, “One day this starwill shine down on my work.” He co-founded Daimler MotorenGesellschaft, now DaimlerChrysler. Great accomplishments such asthese demonstrate Schwartz’s claim that a person is best measured bythe size of their dreams. 244

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50 SUCCESS CLASSICSDavid J. SchwartzThe late David Schwartz was a professor at Georgia State University,Atlanta, and was considered a leading American authority on motiva-tion. He was also President of Creative Educational Services, a consult-ing ﬁrm specializing in leadership development. His other books include The Magic of Getting What You Want, TheMagic of Thinking Success, and The Magic of Selling. 245

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1940 The Secret Door to Success“ Your big opportunity and big success usually slide in, when you leastexpect it. You have to let go long enough for the great law of attraction to operate. You never saw a worried and anxious magnet. It stands upstraight and hasn’t a care in the world, because it knows needles can’thelp jumping to it. The things we rightly desire come to pass when we ” have taken the clutch off. In a nutshellDissolve the walls around your success through positive expectations. Trust ultimately in God for your prosperity. In a similar vein Catherine Ponder The Dynamic Laws of Prosperity (p. 216) Florence Scovel Shinn The Game of Life and How to Play It (50SHC) Wallace D. Wattles The Science of Getting Rich (p. 282) 246

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CHAPTER 40 Florence Scovel ShinnJ ericho seemed like an impenetrable fortress to the Israelites, a walled city containing a great deal of treasure that separated them from the Promised Land. They had been decades in the wildernessand were discontented. Yet Joshua is told by God that, if they blowtheir trumpets in a certain way and give a great shout in unison, thecity will be theirs. Amazingly, it works; they walk in and Jericho istaken with ease. All Bible stories have metaphysical or second meanings, FlorenceScovel Shinn says. “Jericho” is simply the success that you may feel hasbeen denied you, but is closer to being yours than you think. It is possi-ble that you have unknowingly built a wall around your success, whichmay fall once you come to certain realizations.Expecting the bestIf you have been hammering away at a goal for years without muchapparent gain, unless you are unusually strong of mind, resentment andenvy will have started to eat away at you. This outlook can sabotageyour success just as it is getting close to being realized. Scovel Shinn devoted her life to helping people recognize the linkbetween their attitudes and their level of happiness. A relaxed state ofexpectancy, she taught, is the best mindset for bringing success intoyour life. Sometimes, intensity of desire can actually turn away thingsthat are good for you because it suggests faith only in yourself and notin the higher power that has created you. Few understand the successlaw that deeply felt, even burning ambitions and desires are most easilyrealised by allowing them to be realized—a case of “set and forget.” It is hard for the driven person to accept the biblical suggestion to“Have no thought for the morrow.” Yet instead of madly pursuingsomething night and day, it is much more efﬁcient to have a relaxed 247

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FLORENCE SCOVEL SHINNknowledge that the achievement you desire is pulling you toward it. Beclear about what you want and then have the faith that it will come.Employ what she calls the occult law of indifference: “Your ships comein over a don’t care sea.” We have all observed that success has its owntime frame and often comes quietly when we least expect it.Preparing for good thingsWhile it is good to change your outlook so that you expect goodthings, you must also prepare for them. You can read as much as you like about prosperity thinking andmake afﬁrmations, but this is only “armchair faith,” Scovel Shinn says,unless you act prosperously in real life. She recounts the story of awoman who wanted to send her two daughters to college, but clearlydid not have the money. However, against her husband’s objections thatthe idea was unreasonable, she went ahead with plans for their enroll-ment, stating that “some unforeseen good” would occur. As it hap-pened, a rich relative sent her a sum of money that covered all the girls’tuition costs. Doubt, worries, and living in the past only buttress the walls aroundyour Jericho. Life has a way of shaping itself to our expectations, goodor bad, Scovel Shinn says, therefore let your thoughts and actionsexpress relaxed, unwavering faith.IntuitionWhile Scovel Shinn describes prayer as “telephoning to God,” she saysthat intuition is “God telephoning you.” Some people are careful reasoners, relying only on their intellect tosolve problems. They “weigh and measure the situation like dealing ingroceries,” but the solutions they come up with are far from perfect.How often do you wish that you had gone with your hunch on anissue? At Christmas time a house can be ﬁlled with presents, but noneis felt to be quite right for the recipient. Consumption without intu-ition is inevitably wasteful. Asking for guidance, Scovel Shinn says,“always saves time and energy and often a lifetime of misery.”Intuition seems magic, because it has the power of Inﬁnite Intelligencebehind it. “Unless intuition builds the house, they labor in vain whobuild it.” 248

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50 SUCCESS CLASSICS Many of the great achievements have been guided by intuition.Scovel Shinn mentions Henry Ford, who never gave up on his feelingthat the motor car could be for everyone. Despite his boss and hisfather thinking it a crazy idea, he persevered, hearing only the voiceinside him that said “Do it.” When you come to a fork in the road, fol-low the voice of intuition. If it is God’s role to give you hunches, it isyours to be awake to them and not waste them.Relieved of the burdenMany times in your life you will feel overwhelmed. This is the perfecttime to practice faith over fear. A woman came to Scovel Shinn with a mess of complications in herlife, and was simply told, “Let God juggle the situation.” The womantook a leap of faith, imagining the matters out of her hands, and thingsquickly cleared up. Try to juggle everything yourself and inevitably youdrop the balls; what you ﬁnd so difﬁcult is of course nothing to God.Perfect faith leads to perfect outcomes. It is easier to have faith with things that matter less to you, butthe real successes come when you entrust the big things. How canyou remember to buttress this confidence when you need it? If youare beginning to doubt, Scovel Shinn says, say this to yourself: “Hisways are ingenious, His methods are sure.” Let God take up theburden.AbundanceThe Secret Door to Success tells the story of a priest on a visit to aFrench convent, which every day fed many children. However, it hadrun out of money and the nuns were despairing. Holding up a singlepiece of silver, one of them told the visitor that this was all they hadleft to buy food and clothes for the children. The priest asked for the coin and the nun handed it to him. He promptly threw it out the window, saying, “Now rely entirely onGod.” Soon after, people arrived bearing gifts of food and money. The moral? You don’t have to throw away your money or closeyour bank account, but do not depend on the money you have. When-ever you feel “short,” remind yourself: “God is the source of my sup-ply.” You don’t need to know exactly how you will be provided for; 249

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FLORENCE SCOVEL SHINNdon’t limit the channels by which you might receive. The one caveat isthat you should ask for what is yours by “divine right.” Many people achieve wealth but then quickly lose it, because it wasgrasped, not given. To maintain ownership of your investments,remember that they are a manifestation of God for which you must begrateful. Scovel Shinn recalls an old Arabic saying: “What Allah hasgiven cannot be diminished.” If you happen to lose money you will notbe shattered, knowing that God will soon provide other opportunities. Don’t underestimate the power of words to make or break youﬁnancially, Scovel Shinn says, for “Your world is a world of crystallizedideas, crystallized words.” Those who speak only of what they lack willtherefore end up with little. “You cannot enter the Kingdom ofAbundance bemoaning your lot.” Instead, you will enter it by beingmore and more aware of the world’s abundance; you can never reallyfeel a state of lack, knowing the truth of the statement that “The Lordis my Shepherd; I shall not want” (Psalms 23:1).Final commentsMost people give up just before something great is about to happen tothem. Success is a system, Scovel Shinn claims, in which courage andperseverance are important elements. A friend once took her to a NewYork City park to see the sun rise, and she found this simple thing tobe a wondrous experience. You may be so used to your daily habitsand patterns that you wear yourself into a rut. You cease to be awareof the opportunities that arise through being fully present in themoment, and you stop expecting great things. If there is one overall message to The Secret Door to Success, it isthat you must avoid being overwhelmed by life and realize that there issomething larger than you that is willing to shoulder the burdens. It isa simple fact that you are constantly “fooled by the darkness before thedawn.” If you can live by faith instead of fear, you have found ScovelShinn’s secret door. 250

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50 SUCCESS CLASSICSFlorence Scovel ShinnBorn in 1871 in Camden, New Jersey, Florence Scovel was the daughterof a lawyer. She was educated in Philadelphia and attended thePennsylvania Academy of Fine Arts from 1889 to 1897, where she metEverett Shinn (1876–1953), a well-known painter. They married afterher graduation and moved to New York City to pursue their artisticcareers, living near Washington Square. Florence became an illustrator of popular children’s literature inmagazines and books, and also a teacher of metaphysics. Her classic,The Game of Life and How to Play It, was self-published in 1925, fol-lowed in 1928 by Your Word Is Your Wand. The Secret Door toSuccess was published shortly before her death in 1940. 251

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2001 Shackleton’s Way “ It was suddenly clear they were going to face an extraordinary challenge just to stay alive. The men had expected to be working in relative comfort in a base camp, or to be doing ship’s work. Instead, they were stranded on a vast, unstable layer of ice that was their onlyrefuge from the depths of the Weddell Sea or, even worse, the jaws of a killer whale or a sea-leopard. And it was –16˚ Fahrenheit. ” In a nutshell The true leader brings out the best in people in even the toughest situations. In a similar vein Warren Bennis On Becoming a Leader (p. 18) Spencer Johnson Who Moved My Cheese? (p. 168) Martin Seligman Learned Optimism (50SHC) 252

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CHAPTER 41 Margot Morrell & Stephanie CapparellS ir Ernest Shackleton never led a group larger than 27 men and failed to achieve most of his own exploration goals, yet, as Morrell and Capparell point out in Shackleton’s Way: LeadershipLessons from the Great Antarctic Explorer, he has been hailed as oneof the great leaders of all time. Shackleton was selected to go on the 1902 Discovery expeditionwith the explorer Robert Scott, but it fell short of the South Pole by460 miles because the men were racked by scurvy. Six years later, onhis own expedition, he made it to within 97 miles of the Pole beforehaving to turn back. Polar explorers were the heroes of the time, soeven this failure was rewarded with a knighthood from Edward VII. Scott and Shackleton were both beaten to the South Pole byNorwegian Roald Amundsen in 1911. Shackleton, though, came upwith the idea to be the ﬁrst to traverse the still largely unexploredAntarctica on foot, an 1,800-mile journey. With the outbreak of war,1914 was not the best time to go, but the British government allowedthe expedition to proceed. Shackleton had a talent for raising money forhis adventures, and acquired a ship that he renamed Endurance, afterhis family motto “Fortitudine Vincimus” (By endurance we conquer).The story in briefThe Endurance sailed for Buenos Aires, then South Georgia and intothe Antarctic Circle, plowing through 1,000 miles of ice-strewn waterstoward its goal of a base camp on the Antarctic continent from whichthe men would begin the trek. Everything was going well, until withina day’s sail of land the Endurance got caught in ice—“like an almondin a chocolate bar”—and refused to budge. The pack ice gradually dragged the ship north for ten months. Atﬁrst the men lived on board, but the shifting ice started to damage its 253

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ERNEST SHACKLETONstructure and they were forced to camp on the ice. One day, the icecrushed the ship and it sank in front of their eyes. They would nowhave to spend months on the frozen sheets, which threatened to crackopen at a moment’s notice. All of this happened 1,000 miles from anycivilization, and they were without any form of contact. Not least ofShackleton’s many challenges were boredom and isolation. If they didhappen to survive, surely they would go mad. After months on the shifting packs of the Weddell Sea, using uptheir rations, the men realized that they would have to move closer toland and the attention of other ships if they were going to live. Throw-ing gold coins, expensive instruments, and books onto the ice, they setoff dragging three small lifeboats across the iceﬁelds, making a series ofcamps. The time came when they knew they had to make a break for unin-habited, storm-swept Elephant Island, which they managed to do. Itwas a miserable place and they knew that their supplies of food wouldquickly run out. So Shackleton and a small party, in their leaky woodenlifeboat, made an 800-mile, 17-day dash over bitterly cold, tempestu-ous seas to reach South Georgia, where they knew there was a whalingstation. This trip, including giant waves and a hurricane, is now consid-ered one of the epic boat journeys. But even then the ordeal was notover: the men had landed on the wrong side of the island and faced afreezing trek across mountains and glaciers to ﬁnd the station.People manager par excellenceThe expedition is most famous for the fact that Shackleton did not losea single man, and in fact all of them returned in good physical andmental health. How was this possible, at a time when horrible deathsfrom starvation, disease, and exposure were a normal part of polarexploration? How did the crew maintain a degree of optimism andcheerfulness despite a number of weak links and sour characters? WhenLionel Greenstreet, the ﬁrst ofﬁcer, was asked some years later whythey had survived when so many polar expeditions had ended in disas-ter, he replied with a single word: “Shackleton.” He had bravado and vision, yet he was not careless. The safety ofcrew members came above everything. Whereas Scott was a BritishNavy man used to hierarchy and command-and-control leadership, andtreated his men accordingly, Shackleton believed that the crew was the 254

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50 SUCCESS CLASSICSexpedition. Though a long apprenticeship in the merchant navy hadtoughened him and ﬁnely developed his leadership skills, he was gen-uinely interested in people and was ahead of his time in his close per-sonal attention to each member of the expedition. “Flexibility” and “teamwork” have become jaded managementterms, but in 1914 this approach to management was daringly new,and though Shackleton respected the differences between the seamen,the scientists, and the ofﬁcers under his command, he tried to make theatmosphere as egalitarian as possible. If there was a job to be done, noone could be “above” it. He was forward thinking also in realizing theimportance of exercise and relaxation: games and various entertain-ments, plus a careful schedule of mealtimes, gave order to the day andstaved off boredom in the months they were stuck on the ice or hud-dled together under upturned lifeboats. Shackleton could be a soft touch if it contributed to crew harmony,nursing men who fell sick in his own cabin and “ﬂattering the ego-maniacs.” A friend described him as “a Viking with a mother’s heart,”and Shackleton acknowledged that his way could be very feminine (hehad grown up in a female environment, the protective older brother ofno fewer than eight sisters). As a captain he could be tough, butbecause each man felt valued order never broke down. Polar environ-ments are a strange combination of pressure cooker and isolation, andit is common for warring cliques to sabotage expeditions, yet for twolong years Shackleton’s leadership was never questioned. Though itmay seem minor, part of the explanation was that he gave men tasksthey were interested in, and encouraged them to express themselvesthrough their work. In the long Antarctic nights he had them write andperform verse, held parties, and encouraged reading from a well-stocked library. Shackleton inspired such loyalty, the authors suggest, because hewasn’t willing to win at all costs. He saw life as a serious game, butyou were successful only if you could win “honorably and splendidly.”If he had succeeded in the planned traverse across Antarctica and evenone man had died, it would not have been worth it to him.Optimism is courageTop leaders are set apart by a calm wisdom. It is gained through expe-rience, obviously, but also through active knowledge gathering. 255

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ERNEST SHACKLETONShackleton loved nature and adventure, but he also loved books. Hehad traveled the world in the merchant marine, “but nothing openedhis mind to the vastness, richness and complexity of the world the wayhis books did,” Morell and Capparell note. His voracious reading hadgiven him a sense of perspective that would prove crucial on theEndurance expedition. Shackleton’s personal motto was “Optimism is true moral courage.”While the expedition’s predicament looked dire on paper, the menseemed to exist under a happy illusion—conjured up by their leader—that everything would be all right and they would get out alive. Whileother leaders might have been challenged by mutinous resentments,Shackleton engineered the vital camaraderie that kept spirits up. Heknew that optimistic people tend to bring unity to crews, and was laternot surprised when the more pessimistic members of the expeditionperformed the worst (despite seeming more hardy at the beginning),while apparently weaker but more upbeat men ﬂourished. When a school headmaster subsequently asked the explorer to give amessage for his boys, Shackleton replied: “In trouble, danger and dis-appointment never give up hope. The worst can always be got over.”This example of what Claude Bristol called “the magic of believing”(see p. 42) should be remembered every time we face an obstacle; it,above all else, seemed to save the expedition from perishing. Shackle-ton was a natural psychologist and had intended to write a book on themental side of the Endurance ordeal, as this was what had fascinatedhim most about it.Final commentsShackleton’s Way is not meant to be a deﬁnitive account of theEndurance expedition. Alfred Lansing’s gripping Endurance providesthis, and there are good accounts written by members of the crew. WhatMorrell and Capparell give the reader are the lessons of a great leader ineasily digestible form, lessons that they emphasize can be learned. Eachchapter has a list of pointers: Shackleton’s way of “Hiring an outstand-ing crew” or “Creating a spirit of camaraderie,” for example. The chap-ters are also interspersed with snapshots of contemporary leaders whoselives and careers have been inspired by Shackleton. The book is clearly a product of its times, with references to howthe internet is throwing out old ways of business and what this means 256

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50 SUCCESS CLASSICSfor today’s leader, but the timeless part of it is Morrell and Capparell’sidentiﬁcation (after 13 years of study) of leadership secrets forgedunder the most difﬁcult conditions. These are useful to anyone requiredto manage people. The rescue of the Endurance crew made news, but because a warwas on and people were dying the crew were not greeted as heroes, andafter Shackleton’s death in 1922 (age 47, on his fourth Antarctic expe-dition) his name slipped into obscurity. Why the upsurge in interest in this man? Morrell and Capparelldescribe the expedition as a “successful failure”—while failing utterlyto achieve its goals, it managed something much more glorious, the sur-vival of its 27 crew against all odds. The Shackleton story only con-ﬁrms the cliché that the journey is often greater than the destination,and that the camaraderie of fellow travelers is always more satisfyingthan prizes.Margot Morrell & Stephanie CapparellMargot Morrell became a Shackleton scholar after ﬁrst coming acrossthe Endurance story in 1984. Her work includes transcribing two of thediaries of the ship’s crew members. In 1998, business journalist Stephanie Capparell wrote a Wall StreetJournal article on the Endurance expedition, with reference to Morrell’sresearch into Shackleton’s leadership skills. The article sparked renewedinterest in the story, and a year later the two began work onShackleton’s Way, which has been a bestseller. Both authors live in NewYork City. 257

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2000 The Millionaire Mind“They live in lovely homes located in ﬁne neighborhoods. Balance istheir approach to life. They are ﬁnancially independent, yet they enjoy life—they are not ‘all work, no play’ type of people. Most became millionaires in one generation.” “ Some millionaires do feel that their IQ was a factor in theirsuccessful achievements, although most others feel just the opposite. ” In a nutshell People are not born with a millionaire mind. It is a set of attitudes and knowledge that anyone can adopt and acquire. In a similar vein George S. Clason The Richest Man in Babylon (p. 68) Benjamin Franklin The Way to Wealth (p. 108) Robert Kiyosaki Rich Dad, Poor Dad (p. 172) Sam Walton Made in America (p. 276) 258

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CHAPTER 42 Thomas J. StanleyT he Millionaire Next Door was Thomas Stanley’s runaway best- seller, revealing to the world a most unexpected picture of America’s millionaires. The Millionaire Mind is a more thoughtfuland insightful look into the psychology of millionaires, the “soft” fac-tors in terms of attitudes and beliefs that have made these people ﬁnan-cially successful. The research base was broadened to encompass an even wealthierset of millionaires (including many “decamillionaires,” with a balancesheet value of $10 million or more). In all, the author received 733responses to his carefully targeted questionnaires, and the sum effect ofthis book is a little like being invited into the living rooms of 733wealthy people for a ﬁreside chat. The key question asked is: Is it possible to have a very enjoyable,balanced life but still achieve millionaire status? Stanley’s surprisinganswer is that while money can’t buy happiness, millionaires are per-haps more aware than most that the best things in life are free. Ratherthan, as you might expect, spending their nonworking time visitingglamor spots or engaging in expensive hobbies, the great majority ofmillionaires prefer to spend time with family and friends. If they arenot doing this they are involved in community activities or playing around of golf. As the author suggests, most millionaires are a “cheapdate”—but they are not miserly personalities.Vocation, vocation, vocationThe way to sustainable wealth and an enjoyable life is simple: Do workthat you love to do. The more you love your work, the more likely youare to excel at it, and the more rewards will accrue to you. You arealso much more likely to create a proﬁtable niche through the processof deepening your skills, knowledge, and contacts in your chosen area. Millionaires are happy to make a life out of truck spare parts or carwashes if they see opportunities, no matter what others think. Comparethis to people who don’t particularly like what they do but were led to 259

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THOMAS J. STANLEYthe belief that it would give them ﬁnancial and career security.Ironically, this perception leads many to choose similar business oppor-tunities, with the result that they ﬁnd stiff competition. Above all, mil-lionaires “think differently from the crowd”: they spend much of theirtime looking for things that others have overlooked, overturningassumptions and creating proﬁtable niches within generic industries. Still haven’t found your vocation? Against the conventional viewthat you go directly into a ﬁeld after school or college, stick at it, andeventually do well, most millionaires did a variety of jobs and had agood spread of life experiences before they found their vocation. Look-ing at the data, Stanley concludes, “It’s hard for a person to recognizeopportunities if he stays in one place and remains in one job.”Risk, reward, and self-beliefStanley notes the strong correlation between willingness to take ﬁnan-cial risk and ﬁnancial success. While most of us would see starting abusiness as a great risk, the ﬁnancially successful see working 9 to 5 forsomeone else as risky. You are dependent on your employer for yourlivelihood, and your income is related to how much time you spendworking. Millionaires tend to choose a career in which there is no ceil-ing on how much money they can make if they are successful at it. You may ask, what about all those among Stanley’s respondents whodon’t own businesses? Surely the list includes doctors, lawyers, accoun-tants, and people who have done well as employees in large ﬁrms?There are indeed many, but they tend not to be among the decamillion-aires surveyed. Even if a person is at the top of the profession in one ofthese areas, they are required to give the service personally in return fora fee, one client at a time. As an employer, you can always get otherpeople to put in the time, but you reap more and more of the fruits. One of the book’s most fascinating chapters concerns the linkbetween courage and wealth. The millionaires in Stanley’s surveys allseemed to have one thing in common: a belief in their ability to gener-ate wealth. People talk ad nauseam about the importance of investingin the stock market, but, as Stanley rightly points out, few really thinkabout the source of wealth: generally an idea turned into a business,initially owned by a small group of people. Real wealth creators focuson creating a prosperous business instead of gambling on public com-panies about which they can never have all the information. This may 260

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50 SUCCESS CLASSICSseem like putting all your eggs in one basket, but those eggs can bewatched like a hawk.SchoolA good proportion of self-made millionaires worked hard in school butwere not the top students. What they learned most in school was howto judge people well and get along with them, and that hard workcould bring a surprising level of success. Many were judged not intelli-gent enough to succeed because they lacked the high levels of analyticalintelligence or IQ to get them into medical school or law school. Yetlater in life, most of the millionaires admit that these judgments onlymade them more determined to achieve. Knowing that they wouldnever run with the “beautiful people,” they sought to prove their worthin other ways. They became very good at dealing with people and scop-ing out opportunities. People often put success down to good luck, but Stanley’s million-aires rate luck quite lowly on the scale of success factors. “The harderyou work, the luckier you get” seems to be a consensus view.SpouseNine out of ten married millionaires say that their marriage has been asigniﬁcant factor in their success. A spouse provides on-tap psychologi-cal support and advice that is likely to be honest. After love, attractiveness, and sharing common interests, most mil-lionaires chose their spouses for a certain “x-factor”: small things theynoticed that indicated self-worth, integrity, even compassion. It turnsout that millionaire spouses have the sort of qualities that would behelpful in running a business: intelligent, honest, reliable, cheerful.Millionaires choose their lifelong partners astutely, knowing that it willgreatly affect their own success.Every little helpsBecoming wealthy involves a set of habits and ways of doing things,some of which seem of minor importance or common sense, althoughmany of us don’t do them: 261

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THOMAS J. STANLEY❖ Acquiring antique furniture or quality reproductions, which can be reupholstered instead of buying cheaper pieces every few years.❖ Investing in better-quality shoes and getting them repaired or resoled when necessary, instead of buying a new pair.❖ Buying household items at bulk discount stores. Half of the million- aires surveyed always make a list before going supermarket shopping.❖ The typical millionaire from the survey has never spent more than $41,000 on buying an automobile (a good proportion buy quality used cars at much less than this ﬁgure), nor spent more than $38 on a haircut.❖ Millionaires are frugal, but are not into DIY. They get other people to paint their house because they know their time is better spent focusing on their investments. They employ top experts to sort out their tax and legal matters. Big accountancy and legal ﬁrms cost more, but their better advice and contacts make their cost low over the long term.Final commentsThe Millionaire Mind could have been better edited (many statementsare repeated), but it is not for lovely, elegant prose that you will buythis book. At less than the price of a main course at a good restaurant,its insights may prove an insanely good investment. There are a multitude of revealing facts and ideas, including the ﬁve“foundation stones” of ﬁnancial success most often mentioned by mil-lionaires, and enjoyable case histories and anecdotes of speciﬁc million-aires. Forty-six tables display the research data in a manner that eventhe numerically challenged can understand. What is the millionaire mind? Not living a spartan lifestyle andmaking money your god, but staying free from reliance on credit andbeing in control of your ﬁnances. The great self-discipline of the aver-age millionaire means that they can’t help piling up wealth long aftertheir modest needs have been satisﬁed. The millionaire mind evokes thefamous biblical saying, “To them that hath, more will be given.” Notonly do these people have money, they love their work. Most peoplewill think, “Of course they love their work, they can do what theywant,” but few appreciate that it was their love of their vocation thathelped to make them wealthy in the ﬁrst place. 262

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50 SUCCESS CLASSICSThomas J. StanleyStanley has a doctorate in business administration from the Universityof Georgia, and was formerly a marketing professor at the same institu-tion. One of his colleagues there was David J. Schwartz, author of TheMagic of Thinking Big (see p. 246). Stanley’s research into wealthy people began in the early 1970s. Hisbooks include Marketing to the Afﬂuent and The Millionaire NextDoor. He lives in Atlanta, Georgia with his wife and two children. 263

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1993 Maximum Achievement“The way for you to be happy and successful, to get more of the thingsyou really want in life, is to get the combinations to the locks. Instead of spinning the dials of life hoping for a lucky break, as if you wereplaying a slot machine, you must instead study and emulate those who have already done what you want to do and achieved the results you want to achieve.” “The primary cause of success in life is the ability to set and achieve goals. That’s why the people who do not have goals are doomedforever to work for those who do. You either work to achieve your own goals or you work to achieve someone else’s goals. ” In a nutshell Measuring your life daily against written goals is a fundamental of success. In a similar vein Tom Hopkins The Ofﬁcial Guide to Success (p. 156) Maxwell Maltz Psycho-Cybernetics (50SHC) Anthony Robbins Unlimited Power (p. 228) 264

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CHAPTER 43 Brian TracyB rian Tracy grew up in a poor family and had to wear charity store clothes. After dropping out of school he worked in a succes- sion of laboring jobs, living in boarding houses. At 21 he foundwork on a Norwegian freighter ship and traveled around the world,but two years later was back in Canada laboring and doing some com-mission selling. Though not an outward success himself, Tracy had always beeninterested in the question “What makes some people successful andothers not?” As a freshly minted salesman, he started to read vora-ciously on selling techniques and what makes the best salespeople thebest. He copied what they did and, slowly, his results improved. Sixmonths later he was the top salesperson in his company. When he moved into management, he read everything he could onmanaging people and built a large sales organization across severalcountries. Entering the real estate industry, he “hit the books again”and talked to successful developers. His ﬁrst project was ﬁnancing,building, and leasing out a $3 million shopping center. At night Tracycompleted a high school diploma and eventually gained entry to anMBA program to study business theory and marketing, which enabledhim to become a management consultant. To learn about happiness, he read what he could ﬁnd on meta-physics, psychology, and motivation, and when he married learned allhe could about parenting. To get a sense of perspective and ﬁnd outwhy some countries were rich and others poor, he read widely on his-tory, economics, and politics. After two decades of thinking about the question of what makessome people more successful, Tracy decided to put everything he knewinto a “success system” that could help others. He designed a seminar,but it took about three years to really catch on. Then he released anaudiotape program, The Psychology of Achievement, which went on to 265

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BRIAN TRACYsell half a million copies. Maximum Achievement: Strategies and Skillsthat Will Unlock Your Hidden Powers to Succeed is the written versionof this program.The master skillTracy provides us with this potted biography to show how he movedfrom being a wanderer to a focused person. His varied work rolesbecame his means to continue his real love: studying success itself. As he came to synthesize everything he knew, he realized that therewas a “master skill” that could produce brilliant results across a per-son’s life: the ability to set goals and achieve them. When he discoveredgoal setting at 23, for the ﬁrst time Tracy felt that he could have con-trol over his future. Human beings, he learned, are teleological: we areshaped by our ambitions, adapting ourselves to meet the image of animagined end state. Maxwell Maltz’s famous Psycho-Cybernetics toldTracy that humans are really goal-setting machines, requiring goals inorder to live to the full. Maltz compared people to self-guided missiles,which constantly adjust their path to hit a target; in the same way, wecan program ourselves to achieve our desires through constant self-feedback. What is interesting about goals, Tracy found, is that they are valueneutral: whatever desires you set for yourself, you are likely to achievethem whether they are good or bad. Therefore, why not take the timeto create wonderful, life-enriching goals?The skill’s valueFewer than 3 percent of people have written goals, and fewer than 1percent regularly review them, Tracy notes. Yet most of us know that itis good to have goals, and we may even have been to seminars or readbooks on the matter. We spend a dozen years being schooled, but themost important contributor to success in life—how to make our wishesand ambitions concrete—is rarely learned. So why don’t we take the step of setting goals for ourselves? Tracylists reasons, but one that stands out is that we aren’t willing to acceptfull responsibility for our lives. If we don’t set goals, then we don’thave to reach them. The more mundane reason is that goal setting hasnever been part of our family or social background. As a result, we 266

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50 SUCCESS CLASSICSmay end up mixing with people who have no clear idea where they areheaded, becoming a person who “follows the followers.” The payoff of goal setting is that as you achieve each goal you feelin charge of your own destiny, with every moment taken up produc-tively. Self-esteem increases and it is easy to remain motivated. Yousuddenly see the meaning of the saying, “Nothing succeeds likesuccess.”Becoming an expert goal setterFor goals to work, they must stretch you but not be unrealistic. Whenhe was earning $40,000 a year, Tracy set a goal to earn $400,000within 12 months. The problem was, the goal was so huge that deepdown he did not really believe he would meet it. Revising the goaldown to $60,000 within 12 months—still a 50 percent increase—heachieved it within six. Goals must be written down. Although this requires some discipline,there is something magic about putting things on paper that increasesthe probability of a goal becoming fact. The more detail about the goalthe better, because the subconscious needs details to shape action. “Youcan’t hit a target you can’t see,” Tracy says. You don’t need to worryabout the details of how the goal will be achieved, however; what isimportant is to be certain and exact about what you want. Withoutthis you are leaving your life up to chance. Goals can be divided into the tangible and intangible. Intangibleones, for instance relating to an increased ability to be patient, do notneed deadlines. Tangible ones, such as meeting a sales quota, do,because they make you work backwards to ensure that the goal isachieved. A sales trainer friend of Tracy’s commented, “There are nounrealistic goals, only unrealistic deadlines.” If you fail to make the oneyou’ve set, don’t conclude that goal setting doesn’t work. Instead, seekto increase your knowledge of it. Remember that clear goals providethe strength to keep going; without them it is easy to collapse at theﬁrst obstacle.The goal of meaningAny achievement, Tracy says, is worthless if it is not congruent with asense of inner peace, so whatever your goals are they must revolve 267

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BRIAN TRACYaround a single meaningful purpose for your life. You are onlysuccessful to the extent that you can achieve your own happiness, soyou must pursue goals that you are vitally interested in—only then canyou really be of use to others. Loving relationships should feature highly in your goal setting. Onlywhen these are going well, Tracy reminds us, “can you turn yourthoughts toward the self-expression and self-actualization that enableyou to fulﬁll your potential.” Very few people have deﬁnite goals toimprove the quality of their love life. One of Tracy’s other key ingredients for success is ﬁnancial freedom.Money worries are the cause of around 80 percent of relationshipbreakdowns, therefore you owe it to yourself and your partner todevelop the skills and take the education to make yourself morevaluable.Final commentsMaximum Achievement is a straightforward success manual and manyof the book’s ideas may seem like nothing new, but go beyond thecover and you may ﬁnd yourself deeply inspired. The dozen chapterscover almost every aspect of personal development. We have focusedhere on only the central element of Tracy’s philosophy, goal setting, butthere is a wealth of material answering his original question: “Whatmakes some people successful and others not?” One of the answers is that they are great readers. The motivationalgurus like Tom Hopkins, Anthony Robbins, and Tracy never seem tomiss an opportunity to relate how books opened their eyes to what waspossible. This is because the more you read about the lives and actionsof successful people, the more likely it is that you will set the barhigher for yourself. 268

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50 SUCCESS CLASSICSBrian TracyBorn in Canada in 1944, Tracy is one of the world’s leading motiva-tional ﬁgures and holds frequent seminars for sales forces, executives,and individuals. His company, Brian Tracy International, is based inSan Diego, California. Audiotape programs include The Psychology of Achievement, ThePsychology of Selling, Peak Performance Woman, Million DollarHabits, and How to Master Your Time. Books include The 100Absolutely Unbreakable Laws of Business Success, Create Your OwnFuture, and Focal Point. 269

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4TH CENTURY BCE The Art of War “Sun Tzu said:In general, the best method for using the military force is to conquer an entire country; to destroy the country is inferior. Ancient warriors who knew how to use the military well defeated the enemy’s army, but notby battle. They overpowered the enemy’s country, but not by force. Thegoal was to take things whole. In this way, soldiers were not killed andour lord gained the largest booty. Therefore, a general who wins all his battles by destroying other armies is not the ultimate warrior. The ultimate warrior is one who wins the war by forcing the enemy to ” surrender without ﬁghting any battles. In a nutshell The successful person has unusual skill at dealing with conﬂict and ensuring the best outcome for all. In a similar vein The Bhagavad-Gita (50SHC) Chin-Ning Chu Thick Face, Black Heart (p. 62) Lao Tzu Tao Te Ching (50SHC) 270

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CHAPTER 44 Sun TzuS un Tzu lived in the same era as Confucius, in Northern China. He was a brilliant military strategist in the warring states period. Known in China simply as the Sun Tzu, The Art of War is arecord of his ideas for survival and success in a difﬁcult time. For along period only communicated orally, it was later written on bamboosticks and eventually became a book. The Art of War was not the only military leadership text of the time,but came to be considered the greatest. As the authors of an excellentrecent translation (Denma Translation Group, Shambhala, 2002) argue,other military books of the time were simply technical manuals. TheArt of War “emphasizes knowledge as a means of attaining victory, andits principal weapon is the power already existent in the natural andhuman worlds.” This attention to the personal—knowledge, character,attunement to the Tao (the guiding spirit of the universe)—is why it isstill relevant and valuable.Winning through nonaggression “One hundred victories in one hundred battles is not the most skillful. Subduing the other’s military without battle is the most skillful.”The Art of War is a different way of seeing conﬂict, transcending theinstinctual “ﬁght for your life” approach. With enough intelligence, itsays, a conﬂict can be prevented from developing into somethingnasty—or developing at all. The wise general knows that actual battleis only one way to achieve a victory. This is the concept of “takingwhole”: conquering with a minimum of force and with little destruc-tion. The resources of both parties are left intact. Such an outcome we would describe today as “win/win,” not merelydefeating someone in an argument but bringing them over to our wayof thinking. Because we have taken the larger view, pride and dignityare undamaged. In contrast, if we believe in the need for “win/lose”outcomes then we are dependent on aggression and force. The Sun Tzu 271

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SUN TZUway is to think less in terms of “the enemy,” but rather the Tao of thewhole situation—that is, the way it seems to be moving—so that youand the other actor almost become one. You control the situation evenamid apparent chaos. As the Denma translators put it: “This is not amatter of belief in strange forces. Rather, it is about how things work.”A modern exampleMost people will never have to engage in a war, but we do have to dealwith conﬂict. The best way to approach conﬂict—as difﬁcult as itsounds—is in a detached manner. The Art of War teaches that “Theangry general loses.” Anger creates chaos and even greater sufferingthan is necessary, while self-control makes for detached but powerfulaction. In his biography of Warren Buffett (see p. 48), Richard Lowensteinrecounts a crisis in the legendary investor’s career in which he fought tosave the Wall Street ﬁrm Salomon Brothers. The ﬁrm, in which he wasa major investor, was in danger of being closed down by the US gov-ernment because one of its traders had lied to the Treasury. Buffettcooperated to a fault with the investigators and ended up getting themto drop charges. His lawyer argued that going ahead with chargeswould make it seem like cooperation had been penalized. Instead, itshould be rewarded. Lowenstein writes of Buffett: “Instinctively, he shrank from confronting his adversaries, but he was superb at winning them over without a ﬁght. He did not so much convince; he disarmed, he co-opted.”Buffett’s way is the perfect example of Sun Tzu’s message that the bestwarrior gets what he wants without even having to ﬁght. By givingrespectful acknowledgment to your adversaries, they become less antag-onistic and a better outcome is achieved for all.Leadership through characterTo be a Sun Tzu leader requires not only thorough information aboutthe other, but knowledge about yourself. To be invincible, you must make yourself so. You cannot rely on theother’s weakness. Victory comes to those who have developed an ethic 272

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50 SUCCESS CLASSICSof constant reﬁnement and improvement, not those who worry aboutthe competition. You cannot control the other, but by developing yourown strength of character, knowledge, and insight you can build invin-cibility. Donald Krause—whose The Art of War for Executives (1995)applies Sun Tzu to success in managing people, growing your business,and thriving in changing circumstances—notes that in Chinese philoso-phy leadership is character. People with great character, developed overtime, naturally become leaders. “Knowing the other and knowing oneself, In one hundred battles no danger.”Through such self-knowledge, plus the development of strategic insightthrough close observation of others, you can become a “wise general,”or what the Denma translators describe as a “sage commander.”Taking the larger view and seeing clearlyThe smaller view is always the false one, the vulnerable one. To takethe larger view is to open yourself to all pieces of information, whichgives you a more accurate picture of what is going on (the Tao of a sit-uation). The smaller view tends to be driven by fear, the larger view isdriven by an objective that you pursue in a detached way. The Art of War puts the highest value on current information. Itsays: Do not act according to beliefs or dogma but within the informa-tion arc of the situation or moment. Always challenge conventionalwisdom.A master of timingWith the ability to see what is happening also comes skill in picking thedirection and speed of movement. Because you see the whole and havepatience, you have the genius of timing. You can read the ﬂow of a sit-uation and react accordingly. The opposite of this is action based onunconscious habit and rigidity of mind. Even good habits can stand inthe way of reading a situation correctly. Sun Tzu’s strategies are about building up momentum and thenstriking hard and getting away quickly. “And so the military valuesvictory/It does not value prolonging.” The actions of the sage 273

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SUN TZUcommander are quick and decisive. Some further attributes of such aleader:❖ Controls the form of engagement, instead of reacting to it.❖ Moves quietly and without arrogance, in order to achieve the objective.❖ Lets the enemy wear itself out trying to get advantage, then lets its own force throw it off balance.❖ Seems formless, everywhere and nowhere.❖ Decides on victory, rather than wishing for it.❖ Is a master of uncertainty and chaos.❖ Is orthodox in some things, so as to be able to surprise in others.❖ Is practiced in the art of deception; that is, lets others see what he or she wants them to see.❖ Insistently seeks knowledge about the other side.❖ Develops a closeness to the organization so that it can move as one piece and with one spirit.Final commentsIt has taken a long time for the West to fully appreciate The Art ofWar. This is partly because the text itself is so enigmatic. There is nobuilding up of an argument and, like the Tao Te Ching, the order inwhich ideas are presented often seems to make no sense or be contra-dictory. Most translations are more like interpretations. Nevertheless, many leaders in history have attributed their success toSun Tzu’s strategies. Among the ﬁrst was the Chinese warlord CaoCao, who managed to unite all of China, and the inﬂuence continuedright up to Mao Tse-Tung. And as the Denma translation notes, the USMarines manual Warﬁghting bears a striking resemblance to many pas-sages in The Art of War. Yet today it is in the more prosaic situations of everyday work andlife that the book is most used. The Art of War will be found in thehands of the businessperson as much as the military leader orpolitician. Sun Tzu’s manual was forged at a time of great instability when theold beliefs and morality were under threat. It is therefore not about“morality”—that is humanity’s invention—but about being aware ofwhat works, going with the grain of the universe. 274

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50 SUCCESS CLASSICS The Art of War offers strategies for success that have been provenover thousands of years. As is the nature of true wisdom, it is notbound by time or place. 275

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1992 Made in America “It is a story about entrepreneurship, and risk, and hard work, andknowing where you want to go and being willing to do what it takes to get there. It’s a story about believing in your idea even when maybe some other folks don’t, and about sticking to your guns. But I think more than anything it proves there’s absolutely no limit to what plain,ordinary people can accomplish if they’re given the opportunity and the encouragement and the incentive to do their best.” “I always wanted to be the best retailer in the world, not necessarily the biggest.” In a nutshell Be the best at what you do and the world will beat a path to your door. In a similar vein Andrew Carnegie The Autobiography of Andrew Carnegie (p. 56) Michael Dell Direct from Dell (p. 96) J. W. Marriott Jr. The Spirit to Serve (p. 210) Thomas J. Stanley The Millionaire Mind (p. 258) 276

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CHAPTER 45 Sam WaltonI n 1985, Forbes magazine named Sam Walton the “richest man in America.” Twenty years later, the same magazine ranks four mem- bers of his family among the top 10 richest people in the world, andtheir company, Wal-Mart, turns over more than any other on theplanet. The media were always going to be interested in a family of suchvast wealth. As Walton puts it: “The media usually portrayed me as a really cheap, eccentric recluse,sort of a hillbilly who more or less slept with his dogs in spite of having billions of dollars stashed away in a cave.”Made in America, written in the couple of years before Walton died, ishis attempt to explain the philosophies and strategies behind Wal-Mart’s rise from nothing to be the largest retailer in the world in onegeneration.BeginningsSam Walton had grown up in the Depression, going with his father, aloan appraiser, to witness the repossession of family farms. His boy-hood ambition was always to be a salesman, but after college and mili-tary service he began his retail career with the retailer J. C. Penney.After marrying Helen Robson, whose father put up some money, theyoung couple opened a Ben Franklin variety store franchise inNewport, Arkansas. The store turned out to have very high rent and strong competition,but Walton still managed to multiply sales and proﬁts. When the daycame for the renewal of the lease, the owner refused to do so; hewanted his son to take over the store. Walton was devastated. The couple started over again in Bentonville, an even smaller townin northwest Arkansas. Walton’s Five and Dime adopted the brand newidea of self-service with checkouts at the front and ﬂuorescent lighting, 277

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SAM WALTONand the store did well. Walton had discovered that there was hugeuntapped demand in small towns and their hinterlands if the priceswere right. People were willing to travel tens of miles for a bargain.ExpansionPostwar America was changing rapidly. People were moving to suburbsand commuting into cities and the car was king. Fast food joints andmotels sprouted to service the freeway trafﬁc, which usually bypassedthe towns. In these towns retailing stayed much the same: small spe-cialty stores (butchers, drapers, etc.) and variety stores. The Waltonsbegan to challenge this cozy arrangement by offering much lowerprices, greater variety, satisfaction guaranteed, and long openinghours—all now taken for granted. Walton tried always to buy direct from manufacturers, cutting outthe middleman. If you buy goods at a high price, he believed, “you’vejust bought someone else’s inefﬁciency.” The Wal-Mart strategy—notobvious at the time—is that you have higher proﬁts from selling morethings at a lower price, compared to selling fewer at a higher price. By 1960, Sam and his brother Bud Walton had built an “empire” ofnine variety stores. When asked how much further they would expand,Sam Walton’s answer was “probably very little”—any more and theywould not be able to supervise them all personally. The purchase of asmall light plane, however, enabling the brothers to visit stores quicklyand scout new locations, left this prediction in the dust.Outsider becomes giantThe ﬁrst store called Wal-Mart was not opened until 1962, by whichtime Walton was 44. SS Krege Co.’s Kmart opened for business thesame year. Walton emphasizes his company’s outsider status. For much of itshistory, it was viewed as a hick upstart from Arkansas and not takenvery seriously. By the early 1970s, Kmart had 500 stores and theWaltons fewer than 70. By 1976, Kmart had doubled to 1,000, whileWal-Mart still had only 150. The ﬁrst Wal-Marts were quite ugly and chaotic, but prices weregenerally 20 percent lower than other stores and this alone caused thecustomers to ﬂock in. With improved distribution, the company had 278

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50 SUCCESS CLASSICSfound a way to grow at 30 to 70 percent a year, and competition withKmart began to heat up. The ﬁgures say it all. By 1980 there were 276Wal-Marts, and by 1990 the company hit $1 billion in proﬁts with1,528 stores. In the year that Sam Walton wrote Made in America, Wal-Mart sold27 million pairs of jeans and 280 million pairs of socks, enough forevery man, woman, and child in the USA.Wal-Mart todayWal-Mart is now often criticized for being closed to unions and forhaving a third of workers who are only part-time. Another accusationconcerns the company’s comparatively small charitable giving. Walton’s defense was that his overriding aim is to save customersmoney, and through these savings to raise the standard of living wher-ever his stores are located. Neither higher wages nor an expansive char-ity program would serve this purpose. Wal-Mart’s policy of usingAmerican suppliers where possible, Walton believed, created hundredsof thousands of jobs and made US manufacturing more competitive.He had also made sure that the Wal-Mart organizational structureallowed ideas to ﬁlter up from the grass roots; the company had onlygot so big by “thinking small.” On these points it is clear that Wal-Mart could not be more different from the Enrons of this world, whoseoperating style Walton referred to (years before the problems in someof America’s largest corporations was revealed) as “looting from thetop.”The Sam Walton way in business and life❖ Copy other businesses’ ideas and successfully adapt them (“most everything I’ve done I’ve copied from somebody else,” Walton wrote).❖ Competition forces reﬁnement. Welcome it.❖ Embrace technology, but only to reduce costs and serve the customer.❖ Never stop looking for ways to save. Wal-Mart’s executive ofﬁces are cramped, and Wal-Mart executives famously sleep two to a hotel room when traveling.❖ Never pass up a market because it looks too small. 279

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SAM WALTON❖ Treat your employees (Wal-Mart calls them associates) well. Happy associates will treat customers well and customers will come back. (Wal-Mart’s proﬁt-sharing program has made a lot of associates well off, while “shrinkage”—stealing by employees or their friends—is half the industry average.)❖ Never be satisﬁed with how things are. “To succeed in this world, you have to change all the time.” This, not money, drove Walton.❖ Your job in life is to create value where there was none before. To gain money, enrich the world in some way.❖ Don’t be afraid of being wrong, and never worry about changing your mind. Walton enraged other managers by going back and forth on big decisions.❖ Speak to people before they speak to you. Acknowledge them.❖ Have goals and set them high.❖ Retain an underdog attitude.Final commentsWalton’s dedication and determination were notorious. For hisSaturday morning meetings with managers, he would get up at 3 or4 am to go over the week’s ﬁgures, giving him the best overview of any-one in the company. Wal-Mart would never have expanded at the paceit did without the founder’s emphasis on action: “getting it all done inrecord time.” Yet at the end of Made in America, written when he did not havelong to live, the driven Walton asks: Was it all worth it? Was buildingWal-Mart worth the time he couldn’t spend with his family? Hisanswer is “yes,” for the simple fact that everyone has a role to play inlife, and his was as a merchant. His family was extremely important tohim, but this was his calling. The book is a classic because it is not an ego trip. Walton takespains to point out that Wal-Mart is a collective success story, and evenif you have zero interest in retailing you may be fascinated by the taleof what a single family can achieve. Helen Walton, who had a degree inﬁnance, was clearly a major factor in her husband’s success beyond thestable home life she provided. He had originally wanted to go intopartnership with a friend and open a store in St. Louis, but she over-ruled him: no partnerships, no living in a town with more than 10,000people. The seed of Wal-Mart’s success—a family-based company with 280

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50 SUCCESS CLASSICSa small-town focus—was thus sown by Helen Walton. Get the book to read Sam’s “10 rules for building a business,”equally appreciated as 10 personal success rules, and for the manyanecdotes from Wal-Mart family members, managers, and associates. Ifyou are considering starting a company, you should read Made inAmerica to rethink what might be possible.Sam WaltonWalton was born in Kingﬁsher, Oklahoma in 1918, and when he was 5his parents moved to Missouri, ﬁnally settling in Columbia. He soldmagazine subscriptions and ran paper routes through school and intocollege, where he was making $4,000 a year while doing a businessdegree. He made efforts to be well liked and became president of thestudent body. When America went to war in 1942, a minor heart irregularitymeant that Walton was put on limited duty. While living in Oklahoma,where he was working at a gunpowder plant, he met his future wifeHelen Robson, daughter of a prominent banker and lawyer. Theywould have four children, Rob, Jim, Alice, and John, who are stillinvolved in the day-to-day running of the company. Walton Enterprises,the Walton family partnership, owns over a third of the company’s pub-licly listed stock. Walton decided to go public in order to free the familyfrom debt. In 1992, aged 74, Walton died of a form of bone cancer. He hadrecently received the Presidential Medal of Freedom. Walton hadwanted to spend his last weeks visiting stores, but immobility and theencouragement of associates and family provided the opportunity toﬁnish Made in America, which was co-written by John Huey. 281

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1910 The Science of Getting Rich“Life has advanced so far, and become so complex, that even the mostordinary man or woman requires a great amount of wealth in order tolive in a manner that even approaches completeness… To understand the science of getting rich is therefore the most essential of all ” knowledge. “ Riches secured on the competitive plane are never satisfactory andpermanent; they are yours today, and another’s tomorrow. Remember, if you are to become rich in a scientiﬁc and certain way, you must rise entirely out of the competitive thought. You must never think for a ” moment that the supply is limited. In a nutshell It is natural and logical that you should become rich through the use of your creative powers. In a similar vein Claude M. Bristol The Magic of Believing (p. 42) Shakti Gawain Creative Visualization (50SHC) Catherine Ponder The Dynamic Laws of Prosperity (p. 216) Florence Scovel Shinn The Secret Door to Success (p. 246) 282

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CHAPTER 46 Wallace D. WattlesW hen you come across a book with a title like The Science of Getting Rich, you may be forgiven for suspecting that it is a greed manual by an author of questionable motives. It isworth keeping an open mind, however, as Wattles’s classic is essentiallya metaphysical work that deals with a very earthly issue. The monistic view of the universe, on which the book is based, saysthat everything in the universe is linked up and part of the whole. It isthe basis of oriental philosophy and religion, and in addition, Wattlesargues, the foundation for Descartes, Spinoza, Leibnitz, Schopenhauer,Hegel, and Emerson—philosophers whom he spent years studying. It isalso the faith of the New Thought churches, which are remarkablylight on dogma and strong on the betterment of humanity. Whereas the traditional Christian church linked spirituality withpoverty, the religion of Wattles emphasizes the naturalness of abundance.He took this to its logical end by saying that a person could not really ful-ﬁll their potential if they had to struggle ﬁnancially—in fact, the evolutionof the world depended on each of us seeking riches in an honest way. Let us go further into this short but intriguing work, one of thetwentieth century’s early prosperity classics.Tapping in to the flowWhat is the source of wealth? All the great prosperity writers say thatthe origin of wealth is thought, rather than things. Napoleon Hill calledthis source Inﬁnite Intelligence, Deepak Chopra (see 50SHC) named itthe “ﬁeld of pure potentiality,” and both Wattles and Catherine Ponderdescribe the formless stuff from which all matter springs as“substance.” Can abundance really emerge from apparent nothingness? Considerwhat the great inventor Thomas Edison said: 283

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WALLACE D. WATTLES“Ideas come from space. This may seem astonishing and impossible to believe, but it is true. Ideas come from out of space.”This comment is found in The Magic of Believing (see p. 42), whoseauthor, Claude Bristol, remarked, “Surely Edison should have known,for few men every received or gave forth more ideas.” The premise of Wattles’s science is that if you purposely place a clearthought in the formless substance, it cannot help but ﬁnd materialexpression. Through visualization of what you desire on a repetitivebasis, the thing will come into being through the organization of exist-ing modes of production. This is the secret shortcut to gaining whatyou need. Yet humanity, through most of history, has approached this from theother way round, by trying to create only from existing materials,applying thought to things through manual labor. Wattles notes that wehave only just begun to operate as God does, who is after all continu-ally creating something from nothing. Through the science of mind, weare now starting to see that we can manifest things more easily andmore perfectly by ﬁrst impressing the idea of them on formlesssubstance. If you accept that everything comes from something immaterial,how you live and act will be different from someone who believes thatthe foundation of everything is matter. Appearances alone will cease toform the basis of your decisions, because your underlying knowing willbe that the universe is abundant and ever-renewing. In Wattles’s words:“To think health when surrounded by the appearances of disease, or to think riches when in the midst of appearances of poverty, requires power; but he who acquires this power becomes a master mind. He can conquer fate; he can have what he wants.”The fact of increaseNature always seeks expression and increase—this is the one reliablefact of the universe. It seeks greater sophistication and reﬁnement; inshort, progress. Therefore, Wattles argues, “there can be no lack unlessGod is to contradict himself and nullify his own works.” It is naturalfor you to want more, and the desire to be rich must be understood interms of organic growth and progress. 284

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50 SUCCESS CLASSICS The caveat: What you seek must be in harmony with the universe. Itshould be to further your fullest expression, not merely for excitementand entertainment. “You do not want to get rich in order to live swin-ishly, for the gratiﬁcation of animal desires; that is not life.” You wantwealth so that you can pursue your interests and develop your mind,travel, surround yourself with beauty, and be in a position to givegenerously.Creation not competitionWattles reminds you that the substance that creates the evolving uni-verse does not pick and choose who it will favor: its power is open toall and its ﬂow of riches is endless. There is no need to be fearful ofwhat you will “get”—“You do not have to drive sharp bargains,” hesays—and no sense in trying to take things away from others. These ideas of competition do not reﬂect the reality of an abundantuniverse. The concept of competition rests on the belief that there isone pie to be carved up, whereas creation rests on an acknowledgmentof inﬁnite riches. You need to become a creator rather than acompetitor. However, what about all the people who have become rich on theplane of competition? They are like the dinosaurs of prehistoric eras,Wattles says, in that they have been a vital part in an evolutionary pro-cess of organizing production, but are invariably brought down by thesame logic of competition that thrust them to the fore. Their richeswere neither satisfying to themselves nor enduring in a wider societalsense. Consider that other people can’t “beat you to it” if you are creatingsomething unique out of the imagination, skills, and experience thatmake up your unique personality. Big organizations cannot shut youout of prosperity if you follow your own path to it. Wattles’s further tipfor real-world prosperity is that you must endeavor to provide some-thing that buyers feel is greater in value than the price they have paidfor it. To use a contemporary term, you must “overdeliver.”Harmonious gratitudeMany will attest that the best way to draw something to you is to givethanks that you already have it. Because the nature of the universe is 285

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WALLACE D. WATTLESabundance, it rewards those who are actively aware of the fact and arecontinually grateful for it. When you are attuned to the source that creates all things, it is natu-ral that it will provide you with the things you need. Gratitude will pre-vent you from falling on to the plane of competitive thought and lack,and make you realize the blessings that are already yours. Wattlesrefers to the Bible’s words “Draw nigh unto God, and He will drawnigh unto you” as a statement of fact, because thanks cannot fail tomove the giver, and indeed will inspire them to give more. Wattles further advises you not to spend your time complainingabout the world, railing against magnates and politicians. These peopleare part of Earth’s evolution, and their actions allow you physically topursue your opportunities efﬁciently and in peace. Instead, cultivategratefulness. Never talk about your past ﬁnancial troubles, Wattles says: “If youwant to become rich, you must not make a study of poverty.” Do notcare how poverty is created or sustained, even if you have an interest inthe history of tenement dwellers or hunger in developing countries—look only for what makes for riches. The poor need inspiration morethan charity, and so you should endeavor to show them the path towealth rather than trying to alleviate poverty.Final commentsThe question must be asked: Why seek to be rich? Some will say thatwe should want less, settling for a standard of living that is less taxingon the earth. This is no doubt true, but it fails to take account ofhuman nature. What is a person if not a bundle of aspirations? Desire is the engine that drives the world, and without ever-increasing wealth there would be a miserable gap between what iswanted and what can be afforded. The nature of life is growth andincrease, so it would be contradicting nature to restrict the urge toplenty. It is also a fact that you cannot seek the higher things in life if youhave to ﬁght for the basics. “Moral and spiritual greatness,” Wattlessays, “is possible only to those who are above the competitive battlefor existence.” You will not be able to pursue what fascinates you orfulﬁll your intellectual potential if you have no money to buy books orfree time to read. It is also much easier to have a positive view of life 286

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50 SUCCESS CLASSICSwhen you are able to surround yourself with items of beauty. And notleast, Wattles points out, to live soulfully a human being must havelove, and it is difﬁcult to love when you are poverty stricken. In the twenty-ﬁrst century we seem much more open to the idea thatspirituality and wealth go together. For this we partly have to thank thepioneers of prosperity consciousness, who have removed the possibilityof personal riches from the realm of guilt to rightful expectancy. TheScience of Getting Rich will be dismissed as quaint by some, but it wasactually ahead of its time. Despite its mystical language, it is pro-foundly practical.Wallace D. WattlesBiographical information on Wattles is scant, but we know that he wasborn just after the American Civil War, and died not long after the pub-lication of The Science of Getting Rich. His other books include Health through New Thought and Fasting,The Science of Being Great, The Science of Being Well, and a novel,Hellﬁre Harrison. 287

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2001 Jack“There’s no straight line to anyone’s vision or dream. I’m living proof of that. This is the story of a lucky man, an unscripted, uncorporate type who managed to stumble and still move forward, to survive and eventhrive in one of the world’s most celebrated corporations. Yet it’s also a small-town American success story. I’ve never stopped being aware of my roots even as my eyes opened to a world I never knew existed. ”“We build great people, who then build great products and services.” In a nutshell Never underestimate how far you can go by merely being yourself. In a similar vein Warren Buffett (by Roger Lowenstein) Buffett (p. 48) Andrew Carnegie The Autobiography of Andrew Carnegie (p. 56) J. W. Marriott Jr. The Spirit to Serve (p. 210) Sam Walton Made in America (p. 276) 288

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CHAPTER 47 Jack WelchJ ack Welch was inspired to write Jack: Straight from the Gut after receiving hundreds of letters. All their working lives the people who wrote to him had felt the pressure to conform in order to be suc-cessful, but in him they found a successful nonconformist, someonewho had shaped the company he worked for instead of letting it shapehim. Hired by General Electric in 1960 to join a team developing a newtype of plastic, from the beginning Welch was determined to ﬁghtbureaucracy and be himself, even if it meant getting sacked. His ﬁrstyear was so awful, he says, he almost left, and notes that his career hadparalleled the celebrated 1960s movie The Graduate, in which a youngDustin Hoffman is told that he should “get into plastics.” Despite blowing up a factory and building another one only to dis-cover that the product had major ﬂaws and was not ready to go tomarket, Welch rose up through the ranks. Managing to more than dou-ble GE’s embryonic plastics business in three years, eight years afterjoining GE he became general manager of the plastics division.Rise of a maverickIn 1970s American corporate life, command and control was the wayto manage and no one talked about passion or fun. Welch took a dif-ferent approach: “I tried to create the informality of a corner neighbor-hood grocery store in the soul of a big company.” His philosophy ofinformality included riotous celebrations whenever even small mile-stones were reached. “In those days, I was throwing hand grenades,trying to blow up traditions and rituals that I felt held us back.” But it was his results that really got him noticed. Chairman RegJones, who had acquired the tag “most admired businessman inAmerica,” installed Welch in a new job at GE headquarters as chief ofconsumer goods, which accounted for 20 percent of GE’s revenues. Welch found himself in the race for the succession to GE’s top job.His self-conﬁdence had always made him believe that he was CEO 289

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JACK WELCHmaterial; now it was getting serious. After a highly charged lead-upperiod and against a number of more obvious candidates, in April 1981Welch was elected CEO. The new man had had little experience withthe media, Washington, or Wall Street, and the Wall Street Journaldescribed his succession to head one of America’s industrial juggernautsas the replacement of “a legend with a livewire.” Hardly a vote of greatconﬁdence.People first, strategy and everything else secondWelch admits that he did not have detailed plans for where he wantedthe company to go, only that he knew how he wanted it to feel. Creat-ing a new culture among 400,000 employees and 25,000 managerswith layers of bureaucracy was always going to be a hard task. Itwould end up taking two decades. For Welch, it was all about people. By hiring the best you got thebest ideas, and if those ideas could freely circulate in a “boundaryless”environment (a term he invented), it would be one of the best places inthe world to work. In his ﬁrst years Welch spent a great deal of time instaff reviews, trying to cut out the dead wood and identify the stars.Intense locked-door sessions involving brutal personal scrutiny resultedin many staff leaving. Welch pioneered the system of managers having to remove 10 per-cent of their staff annually. Most found this difﬁcult and painful, butrather than creating a climate of fear it allowed people to know wherethey stood, in stark contrast to what Welch describes as the “false kind-ness” of past personnel reviews, which betrayed both the personinvolved and the organization. GE employee surveys actually showedthat most employees wanted the system to become more, not less, per-formance driven. People work better to operating targets, and even bet-ter to big goals that may be only just attainable. The GE systemundermined the conventional wisdom that promoting people for per-formance, and doing the opposite for bad performers, is “bad formorale.” We are graded all through school and college, Welch argues, whyshould it stop when we go to work? And if players in baseball teamscan get wildly different pay packages, yet still play well as a team, whycan’t this apply to the workplace? “Rigorous differentiation,” he says,“delivers real stars—and stars build great businesses.” 290

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50 SUCCESS CLASSICS By the mid-1980s, Welch had reduced the GE work force by around25 percent, earning himself the nickname “Neutron Jack” (the peopleget blown away but the buildings are left standing). At the same timehe spent $75 million on a new ﬁtness and conference center at head-quarters and undertook a major upgrade of the ﬁrm’s Crotonville man-agement development center. The backlash was immediate: how couldhe lay off so many while lavishing money on such “luxuries”? If GEwas going to move ahead, he told everyone, it had to spend moremoney on fewer people. Welch did exactly this, creating a ﬁrm six times larger than the onehe inherited, but with fewer managers overall and only 25 more vice-presidents.Strategies to motivate 300,000 peopleWelch’s signature business strategy for the multitude of GE’s businesseswas that each of them would have to become either No. 1 or No. 2 intheir ﬁeld, or they would be sold off. The strategy struck fear into someof GE’s underperformers, but was easily understood and created afocus. If they were not No. 1 or No. 2, why exactly were they in thebusiness? Another strategy was to make every business pretend that it hadonly 10 percent market share and thereby have to ﬁnd ways to createrapid growth. One outcome of this strategy was that GE began tomove into services to support its manufacturing. It developed the con-cept of “market deﬁnition,” which calculated the total size of the mar-ket including all services related to the product (e.g., for jet engines,everything from fuel to ﬁnance). By these measures, its potential marketwas much larger: instead of just “making and selling products,” it wasselling overall management. Other initiatives developed under Welch include:❖ “Six Sigma” quality control (requiring only 3.4 defects/million in production operations; the norm was 35,000).❖ Globalization—not simply acquiring more businesses around the world but developing local talent.❖ E-business—Welch couldn’t even type or use the internet in 1997, but a couple of years later had GE aggressively facing up to any possible challenges from start-ups. 291

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JACK WELCHDespite some failures (a disastrous acquisition of investment ﬁrmKidder, Peabody and the collapse of a takeover of HoneywellInternational, thanks to EU regulators), GE grew six times larger underWelch, a player in everything from CT scanners to ﬁnance to the NBCtelevision network. In his ﬁnal year (2000), earnings jumped to a record $12.7 billionon revenues of $130 billion. In the previous six years GE had morethan doubled its revenues, attracting the title “most valuable companyin the world.”A GE in Jack’s imageBorn in 1935, John F. Welch Jr. had grown up in the working-class partof Salem, Massachusetts. His father was an Irish-American railroadconductor, and neither parent had graduated from high school. Hecredits his strong-willed mother for much of his success. Over cardgames she taught him how to compete ferociously, and told him thathis stutter was simply a case of his brain being too fast for his mouth.His “hugs and kicks” way of dealing with GE staff was taken directlyfrom Grace Welch, as was his trademark self-conﬁdence. Yet in Jack hemakes a distinction:“Arrogance is a killer, and wearing ambition on one’s sleeve can have the same effect… Self-conﬁdent people aren’t afraid to have their views challenged. They relish the intellectual combat that enriches ideas.”This attitude of brash openness would become part of GE’s culture. Toward the end of the book he talks about “sick” companies andthe drain they are on communities. Only a healthy ﬁrm generatingproﬁts can boost a town or a city, with the ability to spend money onenvironmental measures and generally be a good corporate citizen. Welch’s mother cried the day that Franklin Delano Roosevelt died,such was her faith in government. Reﬂecting his own era’s mistrust ofgovernment, Welch imparts the belief that if anything is going to savethe world, it is successful companies. 292

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50 SUCCESS CLASSICSFinal commentsThere is much talk now about being an entrepreneur and an innovator,with the suggestion that if you don’t start your own company you aresomehow missing out. The fact is that most people still work for com-panies, and Welch’s message is that you can still have a very satisfyingworking life if you can ﬁnd a ﬁrm that is as interested in generatingnew ideas as it is in making money. Jack is a classic not merely because of Welch’s success, but because itis a ﬁne record of American big business in the last decades of thetwentieth century. It gives the reader a good feel for what it must belike to be the CEO of one of the world’s biggest ﬁrms (playing golfwith famous people seems to the one of the perks), and Welch’sdescriptions of acquisitions and the ﬁght for the leadership are grip-ping. Even at over 400 pages, you get the impression that much hasbeen left out. With the help of BusinessWeek writer John A. Byrne, Jack was writ-ten during Welch’s last year in ofﬁce and conveys the buzz of thoseﬁnal days. Jeff Immelt was anointed his successor and continues in therole today. 293

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1992 Coaching for Performance “Coaching is not merely a technique to be wheeled out and rigidlyapplied in certain prescribed circumstances. It is a way of managing, away of treating people, a way of thinking, a way of being. Roll on the day when the word coaching disappears from our lexicon altogether, and it just becomes the way we relate to one another at work, and elsewhere too. ” “All instruction, all criticism, every reduction in choice, every manifestation of hierarchy, every act of secrecy subtly lowers people’sself-belief. Coaching, trust, openness, respect, authentic praise, freedom ” of choice and, of course, success raise it.“To use coaching successfully we have to adopt a far more optimistic view than usual of the dormant capability of people, all people.” In a nutshell Consider changing your way of learning and relating to others, and reap the performance beneﬁts. In a similar vein Stephen Covey The 7 Habits of Highly Effective People (p. 90) W. Timothy Gallwey The Inner Game of Tennis (p. 114) Jim Loehr & Tony Schwartz The Power of Full Engagement (p. 192) Abraham Maslow Motivation and Personality (50SHC) Cheryl Richardson Take Time for Your Life (p. 222) 294

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CHAPTER 48 John WhitmoreT his modest-looking work on the elements of coaching in the busi- ness setting has sold a quarter of a million copies and been trans- lated into a dozen languages. Revised and updated editions helpto keep it selling, but it is a classic because it calls for a transformationin how we relate to others and run organizations, and was the ﬁrstwork to apply coaching principles to the business world. Though it includes an array of useful techniques for increasing yourown performance and bringing out the best in others, Coaching forPerformance’s deeper message of awareness and responsibility makesyou realize that coaching is a way of seeing things: it contains within itthe seeds of great cultural change, from a world driven by instructionand institutions to one shaped more by self-learning and equalitybetween people.What is coaching?Coaching is based on the ancient Socratic principle that you can neverreally teach a person something, they must learn it for themselves. It isabout helping them to become aware of how they do things, to increaseboth their awareness and their responsibility. Coaching is easily learned, and you may feel that you do it alreadyand that it is common sense. Yet it goes against much of what our cul-ture has instilled in us: judgment, criticism, punishment, and reward.Its premise is that each of us is a success-in-waiting, and the coach’srole is simply to draw out a person’s own solutions through question-ing. The questions seek to reveal the details of a situation (the what,when, who, and how much) but not the why. “Why” questions caninvolve judgment and provoke defensiveness, and make the whole pro-cess too analytical. The demand for more detail increases the focus andawareness of the person being coached. They are compelled to go 295

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JOHN WHITMOREdeeper into a situation to discover their own answers. In place of thetraditional imparting of knowledge from one person to another, coach-ing is about optimizing individuality and uniqueness. It is therefore amore positive way of seeing people.The coaching organizationWhitmore gives us the alarming statistic that most people only fulﬁlltheir potential at work about 40 percent of the time, either due to lackof opportunity within the organization, or lack of self-conﬁdence orself-belief. This produces an organization working at much less thanfull capacity, and to counter it management nearly always imposes atechnical or structural ﬁx. The real answer, however, lies in improvinghuman psychological performance. Traditional managers exploit their position of being in charge ofpay, promotion, and ﬁring (the carrot and the stick) to get things done.In this context, they do not see any problem in telling people to dothings. But Whitmore suggests that telling or dictating demotivates peo-ple and creates an “us and them” environment. Staff members areafraid to reveal their true feelings and ideas, and the absence of non-judgmental feedback stiﬂes innovation and improvement. Coaching lies “on a different plane altogether,” Whitmore says.While a traditional boss, if someone comes to them with a problem,will either take charge of the situation themselves or scold the personfor getting into the situation, a coach-boss will ask brief questionsabout what is happening that get the employee to think about it forthemselves. This gives the employee ownership of the problem andprompts them to ﬁnd a solution. Occasionally, in an emergency, it willbe quicker for the boss to tell rather than coach, but in a supportiveenvironment this won’t be a problem. You foster self-belief in people by changing your expectations ofthem. Whitmore mentions tests showing that a pupil’s performancegenerally measures up to the beliefs about their ability that a teacherhas conveyed to them. In the same way, employees generally performup to expectations. Whitmore suggests: “Only when coaching principles govern or underlie all managementbehavior and interactions, as they certainly will do in time, will the full force of people’s performance potential be released.” 296

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50 SUCCESS CLASSICSThis is the difference between an organization with esprit de corps,with a unity of purpose in which everyone’s contribution is maximizedand validated, and the more common kind in which there is a gapbetween stated purpose and performance, and disaffection in the ranks. Jim Collins (Good to Great, see p. 80) has noticed a remarkablesimilarity among the best companies: they are not simply focused oncreating great products, but ﬁrst on creating a great organization inwhich everyone can ﬂourish. If people feel that they have room toreach their potential, great products or great service emerge almostautomatically. This blend of business achievement and personal devel-opment is what coaching aims for.GROWing your people and your businessSome bosses will say that coaching is all very well, but it takes timethat they don’t have. However, once you have a coaching environmentin place you can grow the business and devote time to your peoplesimultaneously. Whitmore provides a well-tested sequence of questionsto be used in coaching sessions that can achieve personal and businessgrowth simultaneously. The GROW sequence involves Goals, Realitychecking, Options, and Will. You might expect that coming to grips with harsh realities faced byan individual or an organization should be ﬁrst on the agenda, butWhitmore points out that setting goals based only on current realitywill result in solutions framed by past performance. In coaching, goalsneed to be formed around what might be possible, not what is likely.To be inspired by a goal, it must express an image of ourselves or ourcompany that takes us to a whole new level. Once you are aware ofwhat is possible (Goals) and where you are currently at (Reality), youare ready to explore the alternative routes and strategies (Options) thatcan get you to your goal. The ﬁnal set of questions to be answeredinvolve action: once a path has been chosen, who is going to beinvolved and when will it be done (Will)? Though simple, this sequence has a transforming effect because thetask of achievement loses its mystery. The clarity of expectationproduces Whitmore’s twin performance pillars of greater responsibilityand awareness. 297

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JOHN WHITMOREBeyond performance: coaching for meaningTimothy Gallwey’s seminal coaching book The Inner Game of Tennis(see p. 114) came out at a time when the very model of how humanbeings work was being challenged, Whitmore notes. The business worldhad been in thrall to behaviorist psychology, which saw us as blank slatesin which everything we knew must be taught or instructed, and assumedthat money was the prime motivation for working. But AbrahamMaslow’s humanistic psychology offered an alternative: a more optimisticview of human beings in which the satisfaction of basic needs (food, shel-ter) led us on to want to satisfy higher needs such as belonging, prestige,self-esteem, and ﬁnally, a sense of meaning or purpose. The company of the future, Whitmore says, will go out of its way toprovide people with money, security, and a sense of community, butwill also have values that a person feels are worthy of the time theyspend working for it. Could a more spiritual—higher-purpose—busi-ness be the ultimate competitive advantage? Whitmore believes so.People want to love the organization for which they work. Those thatare socially responsible, rated on everything from whether they recycleto whether suppliers are treated well, will naturally be more desirableto work for than those that are not. Staff motivation will not be aproblem. What is the role of coaching in this transformation in our attitudesto work? Whitmore believes that stress is a symptom of lack of mean-ing and purpose, therefore coaching must not simply seek efﬁciency orattainment of goals, but draw out people’s highest values so that thework they do can be a way to express themselves fully.Final commentsThis commentary has touched only on some themes. You should getCoaching for Performance for:❖ A valuable chapter on goal setting.❖ Actual questions that you can use in coaching situations, and exam- ples of coaching conversations.❖ A section on providing descriptive and nonjudgmental feedback.❖ Chapters on the dynamics of teams and how to coach them.❖ New chapters (in the 2002 edition) on the relationship to coaching of emotional and spiritual intelligence. 298

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50 SUCCESS CLASSICSWhy has coaching become popular? Whitmore suggested in a recentinterview that it is “a manifestation of the decline in external author-ity.” We don’t trust governments, organized religion no longer gives usthe answers we need, and we cannot rely on the companies we workfor to provide security or values. In this secular vacuum it is clear thatwe must develop our own codes of ethics, and coaching is a way ofaligning our goals and values with daily life. Moreover, in this age of personal development and individualism,coaching is a means of changing the world through people, not institu-tions, Whitmore believes. Though many have paid lip service to coach-ing ideas, they are still to be truly understood, and Coaching forPerformance goes a long way toward reminding us what it is reallyabout. If the discipline succeeds in becoming a part of our culture, thenumber of individuals who are truly empowered and responsible willexplode, and the results of that we can only imagine.John WhitmoreBorn in 1937 in the UK, Whitmore was educated at Eton College,Sandhurst Royal Military Academy, and Cirencester AgriculturalCollege. As a professional racing driver in the 1960s, he won the British andEuropean Saloon Car Championships and drove in the winning Fordteam at Le Mans. He retired in 1966 to run an agribusiness andbecame a director of a Ford dealership, then moved to Switzerland andlater the US to study physics, psychotherapy, and sports psychology. In 1978, Whitmore returned to the UK and set up a tennis, golf, andski school based on Inner Game principles that he had adopted fromTimothy Gallwey. He discovered that this new type of sports coachingcould be applied to the business context, and today his ﬁrmPerformance Consultants is a leader in corporate coaching in Europe. 299

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2003 The Luck Factor“People are not born lucky. Instead, lucky people are, without realizing it, using four basic principles to create good fortune in their lives. Understand the principles and you understand luck itself. More importantly, these principles can be used to enhance the amount of good luck that you experience in your life. ” In a nutshell Successful people are lucky people, but luck is less related to chance than you may think. In a similar vein Martin Seligman Learned Optimism (50SHC) 300

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CHAPTER 49 Richard WisemanW hat is it that makes some people more prosperous and more fulﬁlled? Why do some people always seem to make good decisions? Richard Wiseman noticed that there are peoplewho seem to have a knack for getting things right, a way about themthat always sees them land on their feet. Some people did seem to bemuch luckier than others, yet as a psychologist he was not willing toaccept that “fate” or the universe was conspiring to keep some peopledown while others were given the breaks. Wiseman’s UK research unit has looked into some of the morecloudy areas of his profession, including:❖ How magicians use psychology to fool their audiences (he is an accomplished magician himself).❖ The ability of mind healers to cure illness.❖ Investigation of psychics who help police in solving crime.❖ Techniques of lying and suggestion.❖ How sound waves can intensify emotions.Scientists had not previously spent much time investigating luckbecause it was not thought to be something you could empiricallystudy. Nevertheless, when he began his research, Wiseman wasstruck by the consistency by which people experienced either goodor bad luck. Some of his subjects had had multiple car accidentsand a string of abusive relationships, while others had met the rightperson early on and achieved successful careers. Was this indeed acase of fortune choosing to favor some individuals over others, orwere there actual causes for the level of luck that could beidentified?The lucky personalityWiseman discovered four principles that were present among the lucky.The ﬁrst was that lucky people “create, notice and act upon the chance 301

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RICHARD WISEMANopportunities in their life.” That is, their good fortune can be attributedto their psychological makeup. “Being in the right place at the right time” is considered the essenceof luck, yet Wiseman says that this is precisely the kind of luck that canbe manufactured. Lucky people make a point of going out frequentlyand meeting new people, which increases their chances of having posi-tive encounters; each one could be life-changing or simply provide goodwork leads. If you classify yourself as a lucky person, you are muchmore likely to start conversations with people while standing in aqueue, because you know—whether consciously or not—that thegreater the number of contacts you have with others, the more likely itis that one of them will lead to something good. While this may merelyseem like “being friendly,” it is also indicative of the lucky person’sunderstanding that networks and contacts matter. Reading The LuckFactor, you are certainly reminded of the saying “90 percent of successin life is just showing up.” Another reason that lucky people are luckier is that they have amore relaxed attitude to life. Being relaxed means that they are morelikely to see opportunities that the worried person will not. Wiseman’sexperiments found that “Lucky people see what is there, rather thantrying to ﬁnd what they want to see.” They realize that openness tonew experiences takes them out of mental ruts; if you only ever see anddo the same things, you will only ever get a certain amount of opportu-nities coming your way.Intuition and luckWhile unlucky people tend to make bad investment decisions, buy sharesjust before market collapses, and choose the wrong partners, people whoconsider themselves lucky tend to make decisions that lead to good for-tune and happiness. When Wiseman undertook research to ﬁnd out whythey made these right decisions, he discovered that they have a betterrelationship with their unconscious mind. They trust their intuition. Intuition is created from millions of cues in our environment thatour mind and body take in. Unlucky people get the same cues, but donot trust them. In our left-brain-dominated world trusting intuition isdownplayed, but it makes a huge difference: that between a long andhappy marriage and relationships with the wrong people; betweenchoosing the right profession and the wrong one. 302

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50 SUCCESS CLASSICS Yet lucky people do not simply have a natural talent for using theirintuition, they actively cultivate it through making time for meditationor contemplative thought. They put themselves in mental states thatreveal possibilities of how to act and what to do.Expectations and realityOne of Norman Vincent Peale’s sayings was, “Expect the best, and getit.” Wiseman, too, found that people’s lives show a remarkable degreeof ﬁt with their expectations. People who consider themselves luckytend to get what they want from life as part of a self-fulﬁllingprophecy. Not only do they feel that they deserve good things, but theyfeel some amount of control over making them materialize. Unluckypeople tend to think that they are at the mercy of events, and are notprepared to believe that they deserve a lot of breaks. Wiseman’s further observation was that lucky people persevere toachieve their goals. While the unlucky give up at the ﬁrst obstacle, thelucky keep going even if the chances of success seem small. Lucky people bring things into being because, simply, they believethey can. Here we are reminded of another famous success writer,Napoleon Hill, whose motto was “What the mind of man can conceiveand believe, it can achieve.” Precisely because the positive personexpects great things, they work harder to make sure that these comeinto being. (This, of course, is the principle behind goal setting.)Everything works out for the bestWiseman asked some subjects of his research how they would feel ifthey were waiting in line in a bank and, in the course of a robbery,were shot in the arm. The unlucky people in his surveys said it wouldbe a disaster, while those who had identiﬁed themselves as lucky onlynoted how lucky they would feel that they were not killed! This is what Martin Seligman in his book Learned Optimism (see50SHC) calls “explanatory style,” the ability to explain away misfor-tune so that it is not indicative of a whole person’s being. Lucky oroptimistic people also experience bad times—but they never considerthem permanent. Instead, they look at the beneﬁts that came from theirill fortune, often saying that a divorce or a job loss was “the best thingthat ever happened.” Everything, they believe, works out for the best. 303

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RICHARD WISEMAN One other thing that lucky people often do in a difﬁcult situation isto compare themselves to people who are much worse off.Final commentsIn its ﬁndings that expectations form reality and that people who lookon the bright side are more likely to overcome obstacles, Wiseman’seight-year res